Once upon a time, the idea of a private equity firm launching a credit or infrastructure business was a cause for investor concern. For one thing: it suggested fundraising was too easy. For another: it cast doubt on whether a firm would maintain its sharp focus on private equity.
Not so, these days. “You’re almost seeing investors seeking platforms, seeking managers that they rate in segments across strategies … and looking to see whether there are other things that managers can do that might be tangential and they can deploy more capital behind,” Adam Turtle, co-founder of European placement agent Rede Partners, told PEI last year.
So how does a firm break into a new strategy? We spoke to Nikos Stathopoulos of BC Partners, who described the passage of his firm – a long-standing buyout brand – first into private credit and more recently into real estate.