Investcorp acquires stake in Artemis through GP stakes platform

The strategic partnership is the first investment the Investcorp Strategic Capital Group has made into a real estate manager.

Investcorp has made its first investment in a real estate manager through its general partner stakes platform, affiliate title PERE has learned.

The asset manager, which was founded in Bahrain and has offices around the globe, has formed a strategic partnership with Artemis Real Estate Partners. The US group, based in Washington DC, manages more than $5 billion of assets across real estate equity and debt. The terms of the deal have not been disclosed.

Investcorp acquired a minority, non-controlling stake in Artemis through its Strategic Capital Group, which was launched in 2019 to invest in midsize managers. Capital from the transaction will be used to further Artemis’s growth plan and enable it to increase its commitments to current and future vehicles, PERE understands.

Artemis primarily uses joint ventures and direct deals to invest across a variety of property types and the entire risk-return spectrum. The firm ranks 63rd in the 2021 PERE 100 ranking, with $2.4 billion raised during the prior five years. Investcorp’s involvement with Artemis will be passive and will not change the day-to-day operations at the firm or its investment process.

Headquartered in Chevy Chase, Maryland, Artemis was founded in 2009 by now-chief executive Deborah Harmon, formerly the chief investment officer of the real estate investment group JE Roberts, and Penny Pritzker, the one-time US secretary of commerce and member of the Chicago-based Pritzker business family. Pritzker has since left the firm.

Following ISCG’s investment, Artemis remains a majority-woman-owned firm.

“We are excited to partner with an organisation that shares our strong fiduciary mindset and our view that it is a privilege to invest institutional capital,” Harmon said in a statement.

ISCG looks to make long-term investments in private equity, private credit and real estate managers that are established but also positioned for growth, PERE understands. In addition to buying stakes in managers, it also invests as a limited partner and advises managers on business development, strategy and capital formation. The platform has a strategic partnership with Dock Square Capital, a merchant bank led by former Florida governor Jeb Bush.

“We are very excited to be partnering with the Artemis team, [which] has been delivering strong results for their stakeholders for the past 12 years,” ISCG partner David Lee said in a statement. “We have tremendous respect for their team and culture and look forward to supporting Artemis’ continued success.”

Founded in 1982 to serve investors in the Persian Gulf Region, Investcorp has since diversified its investor base and footprint globally. Its real estate team is based in New York. The firm manages more than $37 billion of real estate.