GP Stakes Business of Azimut Group

GP Stakes Investing

AACP provides capital and strategic value-add services to support and grow our underlying investments, such as advice on business strategy, guidance on product management and distribution of the investment products of our affiliates to our global institutional, high-net-worth and retail clients.

The AACP leadership team has extensive experience in sourcing, structuring, and executing lower middle market GP stakes transactions.

These capabilities are complemented by additional resources from Azimut’s global distribution channel.

01
Investment Focus
We focus on private markets firms in the lower middle market with proven investment expertise, strong management and attractive growth prospects.
02
Strategic Sourcing
We source opportunities from our networks developed over decades in the alternative asset management industry, as well as through third-party referrals.
03
Tailored Transactions
We customize each transaction to satisfy the needs of our affiliate partners.
04
Post-Investment Value Creation
Focus areas include capital formation, strategy and development, operational management, and business sustainability.

Value Creation

Capital Formation

Market Intelligence
LP / Co-Investor Outreach
Unique Access to Global Azimut Wealth Management Channels
Warehousing
Azimut Luxembourg Product Factory

Business Strategy

Product Development and Terms
Brand Development
Go to Market Planning
Client Engagement and Corporate Communications

Operational Advisory

Advise On Institutional Quality Operational Frameworks Across Controls, Compliance and Technology
Identify Areas to Reduce Costs
Integration of ESG and DEI Policies

Human Capital Strategy

Foster a Long-term Durable Business
Succession Planning to Align Current and Future Leadership
Compensation and Culture
Talent Development and Hiring
Organizational Design

Motivation to Seek a Strategic Partner

Growth Capital

Capitalize a new product and hire personnel
Firm expansion into adjacent fund strategies and business lines

Balance Sheet Enhancement

A sponsor may need to increase its GP commitment to facilitate larger fund sizes
Strengthen a firm’s balance sheet for various accretive investments

Capital Structure Reorganization

Buy out external shareholders or retired partners
Retire loans

Succession Planning

Align future leadership and enhance business durability through an equity redistribution plan
Retention planning for next generation investment talent

Strategic Advisory

Institutional partner to help strengthen the firm and grow the business
Alignment with a value-added strategic partner

GP Stakes Market

Market Opportunity

AACP believes GP Stakes can potentially provide distinct return drivers associated with participating in the economics of private markets firms. Assets under management in the private markets have expanded significantly and a GP Stakes strategy seeks to enable investors to harness returns associated with industry growth potential.

Importantly, private markets firms typically benefit from long-term contractual revenues, high operating margins and can offer robust profitability growth as assets scale ⁽¹⁾. With thousands of active private markets firms in the targeted investment universe, a steady supply of new firm launches each year, and limited direct competition for buying GP Stakes, AACP believes it has an ample and enduring supply of potential investment targets.

Illustrative Portfolio Parameters

The team seeks to acquire stakes in high-quality GPs, diversified across investment strategies, geographies, asset classes, and underlying fund vintages.

Lower Middle Market

AACP focuses on private market firms with $500MM to $3B AUM at the time our investment is made.

GP Stakes White Papers

Discover all our White Papers on GP Stakes and don't miss any information.

GP Stakes Essentials: Understanding the Basics

Why Lower Middle Market GP Stakes Offer a Superior Risk-Reward

Sources

2023 Preqin Global Private Equity Report; private markets is defined as Private Equity, Private Debt, Real Estate, Infrastructure and Natural Resources; Azimut views and opinions as of the date hereof based on analysis of historical data.
Preqin Pro; Preqin Future of Alternatives 2028 (October 2023) and associated data pack. AUM totals for private markets investments includes private equity, venture capital, private debt, real estate, infrastructure and natural resources. Azimut’s views and opinions as of the date hereof based on analysis of historical data.
Preqin Pro and Pitchbook; Azimut’s internal research, data, views, and opinions as of the date hereof, which is not necessarily complete and includes subjective determinations.