Investcorp wraps up inaugural GP stakes fund at north of $800m

Investcorp earlier this year closed a debut GP stakes fund earmarked for underserved mid-market opportunities, sources told Buyouts.

Following the close, Investcorp Strategic Capital Partners had more than $800 million, sources said, the lion’s share of it committed capital. The amount also includes money raised for co-investments. The target was $750 million.

Several high-profile LPs came onboard, among them holding company Eldridge, led by Todd Boehly, co-owner of the Los Angeles Dodgers and Los Angeles Lakers. Eldridge last year invested $150 million, a substantial commitment relative to the total size of the pool.

Another is Finback Investment Partners, previously Dock Square Capital, a private equity firm chaired by ex-Florida governor Jeb Bush. The vehicle also secured $40 million from Bahrain-based sponsor Investcorp, a global alternative asset manager.

Investcorp’s GP stakes platform, overseen by its Strategic Capital Group, was formed in 2019. It is led by managing partner Anthony Maniscalco, formerly co-head of Anteil Capital Partners, Credit Suisse’s GP stakes business, and a founding member of Blackstone GP Stakes.

The strategy was created to acquire minority interests in a wide range of GPs, including those specializing in private equity, private debt and real estate. A key focus is mid-sized opportunities, typically established, growth-oriented shops with assets of $1 billion to $10 billion.

GP stakes funds make long-dated minority investments in firms in exchange for a share of income. They have emerged strongly in the past five to eight years, mostly doing deals with large PE brands looking to fortify balance sheets and finance priorities like commitments to offerings and growth plans.

Dealmaking has more recently zeroed-in on the mid-market, according to Pitchbook data. The space is attractive to funds like Investcorp’s because it is mainly unexplored territory, with a lot more sellers than buyers.

New investments

Investcorp Strategic Capital Partners, set to make 10 to 12 investments, has so far accounted for nine. Three of them are disclosed: Centre Lane Partners (2020), EagleTree Capital (2021) and Marblegate Asset Management (2021).

A new deal was done this year, sources said. The vehicle bought into Warwick Capital Partners, a special situations investor. And last October, it acquired an interest in Artemis Real Estate Partners, a women-owned commercial real estate investor.

Five investments are minority or women-owned managers, sources said. That number may increase through Investcorp’s partnership with Xponance in a diversity-focused GP stakes offering, Xponance Diverse Opportunities Fund, which is in the market and targeted to bring in $300 million, Buyouts reported.

Investcorp’s debut fund has been part of vigorous capital raising over the past 12 months. In this period, Blackstone GP Stakes amassed $5.6 billion for a sophomore fund, while Goldman Sachs’ Petershill Partners collected $5 billion for a fourth.

In addition, Blue Owl Capital’s Dyal Capital is on the verge of wrapping up the largest GP stakes vehicle on record. Dyal Capital Partners V has to date gathered $10 billion against a $9 billion target and is expected to close later this year at $10.5 billion-plus.

Maniscalco founded Investcorp’s Strategic Capital Group alongside partner David Lee, Anteil’s former head of transactions. Other senior members of the New York team are partner Fredrik Guster, who joined in 2016 from Sarissa Capital Management, and partner and COO Kris Haber, who joined in January from Safanad.

Haber is also co-head of manager development, giving him a role in post-investment value-added. He is responsible for corporate strategy and business longevity initiatives, while Guster is charged with supporting fundraising. The team is currently building out an operating partner network.

Investcorp declined to provide a comment on this story.