Charlesbank Agrees to Invest in Overbay Capital
US buyout firm Charlesbank Capital Partners has agreed to acquire a stake in Canadian secondaries manager Overbay Capital Partners in a deal that values the firm at about CAD200m ($147m), according to a report by Bloomberg citing people familiar with the matter. The investment will come from Charlesbank’s funds, and Toronto-based Overbay will remain a significant long-term shareholder while retaining full control over its investment activities, with the deal expected to close by mid-year. According to Private Equity Wire, Overbay’s Chief Executive Robert McGrath stated that the partnership will support the firm’s growth by strengthening capabilities in data, analytics, artificial intelligence, and investor relations, as well as aiding talent recruitment.
Overbay Capital’s Background
Overbay Capital, founded in 2016 by Chief Executive Robert McGrath, manages about $3bn in assets and invests across sectors including technology and sports. The firm is based in Toronto and focuses on the private equity secondaries market, which has seen increased activity as traditional dealmaking slows due to higher interest rates. According to the source, transaction volumes in the secondaries market rose 41% last year to $226bn, as reported by Evercore, reflecting a broader trend where buyout firms target this segment for expansion.
Market Trends in Secondaries
The investment by Charlesbank occurs amid accelerating activity in the private equity secondaries market, with higher interest rates slowing traditional dealmaking and reducing distributions to investors. Traditional buyout firms have increasingly pursued acquisitions in this area, as exemplified by EQT’s earlier agreement to acquire Coller Capital for $3.2bn. According to Private Equity Wire, this move aligns with strategies to bolster capabilities in a growing market segment.
Charlesbank’s Profile
Boston-based Charlesbank, founded in 1998 following its spin-out from Harvard Management Company, oversees about $20bn in assets across buyout and credit strategies. The firm’s decision to invest in Overbay reflects its strategic interest in the secondaries market, building on its established position in private equity. According to Private Equity Wire, financial terms of the transaction were not disclosed, but it underscores Charlesbank’s ongoing activities in this space.
