Xponance, a $12 billion multi-strategy investment firm, and Investcorp, a $35 billion leading global provider and manager of alternative investment products, are strategically partnering to collaborate on General Partnership (GP). They aim to stake and seed interests in diverse and woman-owned alternative asset managers. This venture will build on the strengths of both Investcorp’s extensive alternatives expertise and Xponance’s efforts in the seeding and funding of strategies offered by diverse, woman-owned managers.
Xponance Alts Solutions (XAlts), a subsidiary of Xponance, Inc., and Investcorp’s Strategic Capital Group (ISCG) will work together. They will partner to increase access to strategic capital and other resources for select firms that are believed to have been historically overlooked. This approach will further enable diverse GPs in the mid-market space to optimize their:
- Business structures
- Support vertical or horizontal expansion
- Seed adjacent strategies
Launched in 2019, Investcorp’s Strategic Capital Group seeks to be a long-term strategic partner to mid-sized alternative asset managers. They primarily focus on well-established GPs with successful track records and opportunities for growth. Xponance’s alternatives platform, XAlts, began earlier this year to provide direct capital solutions for emerging and diverse alternative managers. It is led by industry veteran Marquette Chester.
Tina Byles Williams, Founder and Chief Executive Officer of Xponance, said: “Our entrance into the alternatives space with ISCG is a natural extension of our DNA as a ‘force multiplier.’ We can expand opportunity for investment strategies offered by diverse and woman-owned firms and industry professionals. Our deep experience in seeding, sourcing and nurturing trusted manager relationships, combined with ISCG’s diversified sourcing, due diligence, structuring and value-enhancing disciplines, should make for a compelling and value-producing, long-term engagement.”
Rishi Kapoor, Co-Chief Executive Officer of Investcorp, commented: “At Investcorp, diversity is a key part of our uniquely global culture. We understand the critical importance of different perspectives as a driver of thoughtful decision-making and investment success. We’re pleased to be partnering with the talented team at Xponance. With their 25-year track record of investing in diverse, woman-owned businesses, we can help investors gain more exposure to managers with the potential for growth and value creation. This partnership will build on our existing commitment to identifying best-in-class private capital GPs. And now with the opportunity for wider exposure to diverse and women-owned firms.”
David Lee, Partner in ISCG, added: “We recognize the growing appetite for capital within the diverse manager community. This expanded at a higher rate than the overall private equity and private credit market over the past few years. This is despite how diverse managers are traditionally underserved and undercapitalized. At the same time, there is mounting interest from investors in gaining exposure to diverse managers. Through this partnership with Xponance, we’ll connect with a broader group of stakeholders. Together, we can create what we believe to be sustainable value for the managers and our investors.”
Xponance, Inc., formerly FIS Group, is a Black woman-led, and 100% employee-owned investment manager. It was founded in 1996 by CEO and CIO Tina Byles Williams. With $12 billion in assets under management, Xponance is a multi-strategy firm. It offers emerging and diverse multi-manager capabilities, as well as active and passive equity, fixed income and alternative solutions. Xponance’s technology subsidiary, Aapryl, LLC, offers a web-based analytical platform that assists asset owners in portfolio, manager and risk due diligence.
Xponance’s primary goal is to be a trusted client solutions partner. The firm’s name comes from the word “exponent” and dually connotes its core objectives. It aims to be a zealous champion for clients and to provide higher-level engagement and a broader array of solutions to meet clients’ investment needs.
Global investment manager Investcorp began in 1982. It specializes in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. Investcorp focuses on generating returns for clients, while creating long-term value for its investee companies and shareholders as a responsible investor.
Investcorp invests a meaningful portion of its capital in offered products, ensuring that its interests align with stakeholders. It prides in delivering tailored solutions for client needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach.
Investcorp today has a presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore. As of December 2020, Investcorp Group had $35 billion in total AUM, and employed approximately 430 people from 43 nationalities. For further information, visit www.investcorp.com.