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Private Equity

PE Stake Sales Trickle Into Middle Market: Private Briefing

Published: June 22nd, 2020
As GP stake deals continue at a steady pace, buyers from the middle market have emerged outside of mega firms that initially made the splash.

Michael Daley wants the private deal community to know that big firms aren’t the only ones shopping for minority stakes in other private equity firms.

As portfolio manager for Goodhart Partners LLC, Daley this past week announced the firm’s first investment in a private equity shop, Washington-based Albright Capital LLC. The deal was done via Goodhart’s Volunteer Park Capital Fund LP, the London outfit’s most recent fund.

So, while PE giants such as Neuberger Berman’s Dyal Capital Partners, the Strategy Capital Group of Blackstone Group Inc.’s (BX) Blackstone Alternative Asset Management unit, and the Petershill team at Goldman Sachs made the initial splash in this deal type, some middle market firms are now getting into the act.

“GP stake investing in our opinion is a very attractive asset class,” Daley told The Deal. “The big firms have led the way in educating the market. We’re taking a different tack by servicing the middle market. We’re playing at the end of the market where others are not.”

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