(Bloomberg) -- Bonaccord Capital Partners, an arm of alternative asset manager P10 Inc., has raised $1.6 billion for its latest fund dedicated to backing private markets firms.
Buying stakes in general partners “has become a more widely accepted investment strategy as institutional investors recognize the depth of the market and the fact these are profitable firms with growth potential and amid the backdrop of potential consolidation, it’s a very exciting place to be,” Bonaccord Managing Partner Ajay Chitkara said in an interview.
More private markets firms have turned to initial public offerings in recent years, driving consolidation among private credit managers, which may spill over to infrastructure and private equity over time, Chitkara said.
Bonaccord, which manages about $5 billion, aims to back private markets firms, specifically targeting those with between $1 billion and $10 billion of fee-paying assets focused on private equity, private credit, real estate and real assets and a 10-year track record.
Institutional investors have more confidence investing in GP stakes as the industry has evolved and some bets have proved profitable, said Bradford Pilcher, a partner at Bonaccord. The magnitude of capital dedicated to GP stakes and capital solutions is expected to continue to facilitate portfolio financings, dividend recapitalizations, continuation vehicles and strip sales, while single-investment realizations may continue through acquisitions of individual alternative asset management firms and potential IPOs, he said.
Bonaccord Capital Partners II, its second GP stakes fund, outpaced a $1.25 billion target and its predecessor fund, which collected about $740 million. The vehicle is roughly 60% invested and has backed Kayne Anderson Private Credit, VMG Partners, Lead Edge Capital, Park Square Capital, Trivest Partners, Shamrock Capital Advisors, Synova Capital and Revelstoke Capital Partners.
In October, Bonaccord agreed to sell a 25% stake in private credit lender Monroe Capital to French investment firm Wendel.
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