GP Staker

GP stake sales are becoming an increasingly prevalent investment strategy that provides exposure to high-growth businesses with immediate cash flow generation. The market for GP stake deals is expanding, with more firms raising dedicated funds and focusing on strategies to support GPs in achieving long-term growth objectives. As highlighted by the author, it's essential for GPs to consider these transactions as a tool for unlocking inherent value within their business. Jeremy Elmore | International Comparative Legal Guides (ICLG) https://lnkd.in/gx37bpJV #GPStakes #GPStake #GPSeeding

Investcorp has raised $125 million by issuing 10-year notes secured by the cash flows of its Investcorp Strategic Capital I fund. The fund, which backs other asset managers, has minority stakes in companies like EagleTree Capital and Banner Ridge Partners, LP. Rod James | The Wall Street Journal https://lnkd.in/gjWkg5cF #GPStakes #GPStake #GPSeeding

The Canadian market for GP stakes transactions is expected to see significant growth in the coming years, following trends seen in the U.S. The uptick is driven by mature sponsors looking to expand their capital base, along with generational transitions in the private equity space. Danielle Kline (Traub) and Sarah Strong | Torys LLP https://lnkd.in/ereDy2xX #GPStakes #GPStake #GPSeeding

This post discusses the growing opportunities for Emerging and Middle Market General Partners in the world of GP Stakes. From strategic transactions to tax implications and comprehensive exit planning, GPs are aligning personal and firm documents to navigate these complex decisions. Crest Capital Advisors #GPStakes #GPStake #GPSeeding

Common Ownership Structures for High-Net-Worth Investors in Alternative Funds 1/ For high-net-worth individuals, investing in alternative assets—like private equity or venture capital—often requires a deep understanding of ownership structures. Here are the common structures used to access these exclusive opportunities: 2/ General Partner (GP) Stake Investing: GP stake investing means purchasing equity in the GP itself, not just the funds it manages. As a GP stake investor, you receive a portion of: Management fees- Carried interest from the GP’s funds This structure allows qualified HNWIs to profit from the GP’s growth and the long-term success of their funds without having to manage the investments directly. 3/ Why GP Stake Investing? GP stake investing offers steady cash flow through management fees and an opportunity to share in the carried interest upside. For qualified HNWIs, it’s a way to gain access to an investment manager’s entire portfolio without investing in each individual fund. You’re essentially buying into their business model. 4/ Limited Partner (LP): As an LP, you invest capital into a private fund but have no role in managing the fund or its underlying investments. LPs are entitled to a share of the fund’s profits and have limited liability, meaning they can only lose what they’ve invested. This is the most common structure for HNW investors seeking exposure to private equity, hedge funds, or venture capital. 5/ Co-Investment: A co-investment is where LPs invest alongside the fund in a specific deal, often at lower fees than typical fund investments: -More control over which deals you participate in -No additional management fees or carried interest on the co-invested capital -This structure is ideal for qualified HNWIs looking to hand-pick deals while keeping costs low. 6/ Secondaries Market: The secondaries market allows certain qualified investors to buy and sell interests in private equity or venture capital funds. This is an attractive option for HNWIs who want: -Liquidity in otherwise long-term investments -Access to funds that are already in their mature stage, reducing risk -A discount on fund interests that have already committed capital -Secondaries offer HNWIs the ability to invest in funds without waiting through the full investment period. 7/ Why the Secondaries Market? You gain exposure to mature portfolios with less risk. You can exit early if liquidity is needed. Potentially buy-in at a discounted price if the original LP is looking to offload their interest. For HNWIs seeking liquidity and faster returns, secondaries are a great option.

Blackstone, the world's largest alternative asset manager, is hiring for an Associate role as part of its Strategic Partners GP Stakes business. Posted responsibilities include evaluating and underwriting investments across various asset classes and conducting due diligence for alternative asset management investments. Blackstone https://lnkd.in/e4qt5JhZ #GPStakes #GPStake #GPSeeding

Blue Owl Capital GP Strategic Capital has played a key role in transforming the GP stakes industry. With over $57.8B AUM and minority ownership stakes in many leading alternative asset managers, Blue Owl, led by Sean Ward, has reshaped how firms tap into financing. Notable moments in this space include Bain Capital’s $1B GP commitment post-GFC, showing the growing demand for new financing avenues in private markets. Michael Sidgmore | Alt Goes Mainstream https://lnkd.in/eStmFjDt #GPStakes #GPStake #GPSeeding

Congrats Michael Boggs, Scott Halsted, and the Revelation Partners team!

The private equity sector is embracing consolidation, but will this result in fewer general partners (GPs)? Claus Mansfeldt of SwanCap and Dominique Gaillard of ARMEN discuss the future of the industry, with Gaillard expressing his belief that smaller firms will remain strong and continue to grow in the years ahead. Aaron Grunwald | Delano https://lnkd.in/d7SJjmyc #GPStakes #GPStake #GPSeeding

Scarcity Partners has raised AUD 75m to invest in local GPs, making a mark in Asia’s alternatives industry, alongside major players like Blue Owl Capital. Fundraising in the region is challenging, but key stakeholders believe upcoming opportunities may shift the market’s momentum. Tim Burroughs | ION Analytics https://lnkd.in/dds4cgXX #GPStakes #GPStake #GPSeeding