Xponance, a USD12 billion multi-strategy investment firm, and Investcorp, a USD35 billion leading global provider and manager of alternative investment products, have entered into a strategic partnership to collaborate on General Partnership (GP) staking and seeding interests in diverse and woman-owned alternative asset managers. This venture will build on the strengths of both Investcorp’s extensive alternatives expertise and Xponance’s long-lived and pioneering efforts in the seeding and funding of strategies offered by diverse and woman-owned managers.
Xponance Alts Solutions (XAlts), a subsidiary of Xponance, Inc, and Investcorp’s Strategic Capital Group (ISCG) will work together to increase access to strategic capital and other resources for select firms that are believed to have been historically overlooked. This approach will further enable diverse GPs in the mid-market space to optimize their business structures, support vertical or horizontal expansion, and seed adjacent strategies.
Launched in 2019 by Anthony Maniscalco and David Lee, Investcorp’s Strategic Capital Group 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. 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.
Tina Byles Williams, Founder and Chief Executive Officer of Xponance, says: “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. 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.” Byles Williams joined the advisory board of ISCG, effective 1 January 1 2021.
Rishi Kapoor, Co-Chief Executive Officer of Investcorp, comments: “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. 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.”
David Lee, Partner in ISCG, adds: “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. 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.”