GP stakes

GP stakes investing has evolved from de-risking founders to providing growth capital and connectivity to the next generation of talent, say global co-heads of Petershill at Goldman Sachs Alternatives, Ali Raissi-Dehkordy and Robert Hamilton Kelly.

Through a value-add approach, GP stakes investors can help managers achieve their long-term objectives faster and with greater certainty, says Melvin Hibberd, CIO of Hunter Point Capital.

Exit events are proving the viability of GP stakes investing, which offers both yield and meaningful potential capital appreciation, says Bradford Pilcher, a partner at Bonaccord Capital Partners.

GPs are seeking partners that can provide a powerful growth engine and expertise around product expansion, say Joshua Blaine, head of GP stakes, and Ward Young, CIO for GP stakes at Blackstone.

The GP stakes unit of Azimut Group has acquired interests in Pathlight Capital and RoundShield Partners, and recently exited its stake in credit manager Kennedy Lewis.

Emerging manager fundraising is down, with first-time funds globally raising around $25bn last year, compared with $47.6bn in 2022, according to data from affiliate title Buyouts

Already a prolific owner of alternatives managers via its balance sheet, global wealth manager AlTi will consider transitioning from LP to GP with the launch of a fund in this space.

The GP stakes investor is looking to improve its managers' sustainability standards regardless of their starting point, according to deputy CEO and COO Renaud Tourmente.

Blackstone’s decision to fold its GP Stakes unit into Strategic Partners underscores the clear synergies between the two strategies – though a few questions remain.

The fund secured $2.1bn in Q4, together with more than $400m in sidecar co-investment capital, according to chief financial officer Alan Kirshenbaum.