Weekend Roundup: Latest Private Equity Fundraising Headlines
In the world of private equity, a notable trend is emerging as firms focus more on co-investment strategies. This shift towards greater collaboration between General Partners (GPs) and Limited Partners (LPs) is evident in recent fund closures, such as Neuberger Berman's NB Strategic Co-Investment Partners V and Stone Point Capital's Trident X.
Neuberger Berman has successfully closed NB Strategic Co-Investment Partners V at $2.8bn, surpassing its $2.25bn target. This fund will target a globally diversified portfolio of direct equity co-investments, reflecting the growing institutional appetite for structures that deepen GP-LP alignment.
Similarly, Stone Point Capital has closed Trident X at $11.5bn, marking its largest fundraise to date. Trident X, approximately $2.5bn larger than its predecessor, Trident IX, which closed in 2022 at $9bn, has already completed its first investment in Ultimus Fund Solutions.
Meanwhile, in Singapore, the Private Credit Growth Fund, a state-led initiative aimed at providing non-dilutive capital to high-growth local enterprises, has found two managers. Apollo Global Management has been selected to manage Singapore's $1bn Private Credit Growth Fund, while Haveli Investments, based in Austin, was established in 2021 and has raised $4.5bn for its first software buyout fund. The mandate places Apollo at the centre of Singapore's latest push to position itself as Asia's private debt capital.
Haveli Investments focuses on software, data, gaming, and adjacent sectors. Its investment strategy includes a mix of structured equity and debt offerings, targeting both minority and control stakes in enterprise software businesses. The firm now manages over $40bn in committed co-investment capital and $140bn in total private markets assets.
The Private Credit Growth Fund, launched by the Ministry of Trade and Industry and Enterprise Singapore, targets mid- and late-stage companies with bespoke financing solutions that preserve founder equity. Backers of the fund include public and private pension funds, insurers, foundations, family offices, and high-net-worth individuals from across the globe.
This trend towards co-investment strategies reflects LPs’ desire for more influence on deal selection, reduced costs, and enhanced partnership with GPs. GPs benefit by securing larger, more committed pools of capital and evolving the investor relationship from transactional to collaborative. The alignment extends to GP stakes and entity-level investments, providing LPs with diversified exposure, access to fee and carry economics, risk mitigation, and better pipeline access to high-quality deals.
In conclusion, recent fund closures like NB Strategic Co-Investment Partners V and Trident X demonstrate the growing institutional appetite for structures that deepen GP-LP alignment through co-investment strategies. This trend, driven by factors such as fee sensitivity, demand for transparency, and a collaborative partnership model, is especially pronounced in regions like the Middle East but increasingly global.
- Limited Partners (LPs) are showing a growing interest in co-investment strategies, as demonstrated by the success of funds like Neuberger Berman's NB Strategic Co-Investment Partners V and Stone Point Capital's Trident X.
- Co-investment strategies allow for greater collaboration between General Partners (GPs) and LPs, as seen in funds like NB Strategic Co-Investment Partners V, which targets a globally diversified portfolio of direct equity co-investments.
- Private Equity (PE) funds, such as Stone Point Capital's Trident X, are closing at larger sizes than their predecessors, reflecting the growing institutional appetite for structures that deepen GP-LP alignment.
- Beyond PE, initiatives like the Private Credit Growth Fund in Singapore aim to provide non-dilutive capital to high-growth local enterprises, with Apollo Global Management selected as one of the two managers.
- Haveli Investments, another firm focusing on co-investment strategies, manages over $40bn in committed co-investment capital and $140bn in total private markets assets, with a focus on software, data, gaming, and adjacent sectors.
- This trend towards co-investment strategies gives LPs diversified exposure, access to fee and carry economics, risk mitigation, and better pipeline access to high-quality deals, evolving the GP-LP relationship from transactional to collaborative.
