Investcorp and Xponance have struck a strategic partnership to foster general partnership stakes and seeding interests in diverse and women-owned alternative asset managers.
The deal will build on the $35 billion Investcorp’s alternatives expertise and the $12 billion multi-strategy specialist Xponance’s efforts in seeding and funding of strategies offered by diverse and woman-owned managers. Hedge fund industry veteran Lisa Vioni helped facilitate the deal between the two firms.
Xponance Alts Solutions, a subsidiary of Xponance, and Investcorp’s Strategic Capital Group (ISCG) will join forces to increase access to strategic capital and other resources for select firms that are believed to have been historically overlooked. The aim is to enable diverse firms in the mid-market space to optimize their business structures, support vertical or horizontal expansion and seed adjacent strategies.
“At Investcorp, diversity is a key part of our uniquely global culture and we understand the critical importance of different perspectives as a driver of thoughtful decision-making and investment success,” said Investcorp Co-CEO Rishi Kapoor. “We are pleased to be partnering with the talented team at Xponance, with their 25-year track record of investing in diverse or woman-owned businesses, to help our investors gain more exposure to such managers with the potential for growth and value creation. This partnership will build on our existing commitment to identifying best-in-class private capital GPs, now with the opportunity for wider exposure to diverse and woman-owned firms.”
Launched in 2019 by Anthony Maniscalco and David Lee, ISCG seeks to be a long-term strategic partner to mid-sized alternative asset managers, with a primary focus on GPs it believes to be well-established, with successful track records and that are poised for growth.
“We have been highly attuned to the growing appetite for capital within the diverse manager community, which has expanded at a higher rate than the overall private equity and private credit market over the past few years, despite traditionally being underserved and undercapitalized,” said Lee. “At the same time, there is mounting interest from investors in gaining exposure to diverse managers. Through this partnership with Xponance, we are delighted to be able to connect with a broader group of stakeholders to create what we believe to be sustainable value for the managers and our investors.”
Xponance’s alternatives platform, XAlts, was established earlier this year to provide direct capital solutions to emerging and diverse alternative managers. It is led by industry veteran Marquette Chester, who joined the firm in February.
“Our entrance into the alternatives space with ISCG is a natural extension of our DNA as a ‘force multiplier’ to expand opportunity for innovative investment strategies offered by diverse and woman-owned firms and industry professionals,” said Tina Byles Williams, founder and chief executive officer of Xponance. “Our deep experience in seeding, sourcing and nurturing trusted manager relationships, combined with ISCG’s diversified sourcing, due diligence, structuring and value-enhancing disciplines, should make for a compelling and value-producing, long-term engagement.”
Williams joined the board of ISCG in January.