Bahrain-based alternative asset management firm Investcorp has partnered with US-based $12 billion multi-strategy investment company Xponance, to back new businesses in its sector run by managers from diverse backgrounds.
The partnership between Investcorp’s Strategic Capital Group (ISCG) and Xponance’s Alt Solutions (XAlts) aims to provide initial stakes and seed capital to more diverse and women-owned alternative asset management firms. The mission is to increase access to capital and other resources for firms that are believed to have been historically neglected.
“At Investcorp, diversity is a key part of our uniquely global culture and we understand the critical importance of different perspectives as a driver of thoughtful decision-making and investment success. We are pleased to be partnering with the talented team at Xponance, with their 25-year track record of investing in diverse or woman-owned businesses, to help our investors gain more exposure to such managers with the potential for growth and value creation.”
Xponance’s alternatives platform was established earlier this year to give direct capital solutions to emerging and diverse alternative managers. It is led by industry veteran Marquette Chester, who joined the firm in February.
Alternative asset managers invest in assets outside public markets like private equity, private credit, venture capital, hedge funds, commodities, real estate and infrastructure.
According to financial data provider Preqin, the volume of alternative assets under management globally is expected to grow to $17.6 trillion by 2025, up from $10.74 trillion at the end of last year.
“Our entrance into the alternatives space with ISCG is a natural extension of our DNA as a ‘force multiplier’ to expand opportunity for innovative investment strategies offered by diverse and women-owned firms,” said the Xponance’s founder and chief executive, Tina Byles Williams.
“Despite being underserved and undercapitalized for many years, the diverse manager community has been expanding at a higher rate than the overall private equity and private credit markets over the past few years. At the same time, there is mounting interest from investors in gaining exposure to diverse managers,” ISCG partner David Lee said.