Mubadala Capital has acquired a minority stake in New York-based secondaries investment manager LSV Advisors, according to Private Equity Wire. The investment expands Mubadala Capital’s exposure to private equity continuation vehicles, according to Private Equity Wire, which cited a Bloomberg report.
Transaction overview
The Private Equity Wire report describes LSV Advisors as a secondaries investment manager based in New York. LSV Advisors was founded in 2005 and manages approximately $5bn in assets, according to Private Equity Wire.
LSV Advisors specialises in single-asset continuation funds, according to the same report. LSV founder and chief executive David Tisch reportedly said the firm intends to reinvest a substantial majority of the proceeds into new transactions, supporting its expansion as demand for GP-led secondary solutions increases, according to Private Equity Wire.
Market data cited in the report
Around 125 continuation funds are expected to enter the secondary market during the fourth quarter, according to PJT Partners, as cited by Private Equity Wire. Most single-asset vehicles are expected to be valued below $1bn, according to the PJT Partners expectation cited in the report.
As widely known context, continuation vehicles are a type of GP-led secondary transaction used to move one or more assets into a new vehicle.
Mubadala Capital’s strategic manager investments
Mubadala Capital manages more than $60bn, according to Private Equity Wire. The firm has increasingly pursued strategic investments in specialist alternative asset managers, according to the report.
Private Equity Wire reported that Mubadala Capital acquired a 42% stake in credit manager Silver Rock Financial last year. The report also said Mubadala Capital is exploring further partnerships across infrastructure, structured finance and hybrid credit.
As widely known context, strategic stakes in asset managers can involve minority ownership positions.
Advisers
Evercore advised Mubadala Capital on the LSV transaction, according to Private Equity Wire. Houlihan Lokey advised LSV, according to the same report.
