GENERAL Atlantic agreed to purchase a stake in Partners Capital, a US$50 billion asset supervisor that focuses on outsourcing investments for establishments together with household places of work, foundations and endowments.
The personal fairness agency is shopping for a minority curiosity from current buyers together with entities tied to Jacob Rothschild and Ronald Cohen, a co-founder of Apax Partners, who’re each staying on as shareholders, Partners Capital chief govt officer Arjun Raghavan mentioned in an interview.
Founding executives of the agency may also be promoting fairness, although nobody is unloading their stakes solely, he mentioned.
Partners Capital will function independently from General Atlantic, which is making the funding via its core development fairness funds.
The transfer will “provide meaningful incentives to lock in talent for the next generation,” Raghavan mentioned. “I don’t mean just for the next few years, but also to provide incentives for future talent coming through.”
General Atlantic, with about US$83 billion of property underneath administration, is understood for profitable early investments in tech companies similar to Facebook and Uber Technologies. It has branched out to different areas together with wealth administration and monetary providers, buying stakes in Creative Planning, Santander Asset Management and Brazilian broker-dealer XP Investimentos.
“It’s really a down-the-fairway, typical, exciting deal for General Atlantic,” mentioned Gabriel Caillaux, who oversees the agency’s enterprise in Europe, the Middle East and Africa. “For us, this another claim to wealth management.”
Raghavan, 48, sees General Atlantic bringing experience in expertise in addition to entry to an much more world investor base. While his agency’s shoppers have already got investments with General Atlantic, Partners Capital won’t be routing new cash to the personal fairness agency.
“We were very, very keen to make sure there was no conflict between what we offered our clients as an investment,” Raghavan mentioned. “We wanted to find a great financial partner.” BLOOMBERG