BNP partners with Northern Lights

BNP Paribas’s alternative assets arm will take a minority stake in the management company of Northern Lights Ventures and will also commit to one of its funds. The two have teamed to buy stakes in institutional asset managers.

BNP Paribas Investment Partners (BNP PIP) has teamed up with Washington-based private equity firm Northern Lights Ventures, taking a minority stake in the firm and also investing in its Northern Lights Capital Partners fund. The terms of the transactions were not disclosed.

Under the terms of the deal, BNP PIP and Northern Lights will work together to invest in institutional investment firms primarily in the US but also in Asia and Europe.

Northern Lights typically invests in asset management and financial services companies in the US. It was formed in 2006 by Tim Carver, formerly of private equity firm Orca Bay Partners, and former Russell Investments executives Andy Turner and Paul Greenwood.

BNP PIP hopes to use its relationship with Northern Lights to identify strong investment managers with the potential for growth, the firm said. The partnership will allow Northern Lights to expand its reach globally while maintaining its independence, Greenwood said in a statement.

Northern Lights is due to make its first investment outside the US into an unnamed British asset manager with $700 million in funds later this month, according to The Financial Times.

BNP PIP is the alternative investment arm of European banking giant BNP Paribas. As of September 2008 BNP PIP’s assets under management and advisement amounted to €326 billion, nearly half of which was managed for institutional clients. The firm has 2,400 professionals serving clients in 70 countries.