GP Stakes Business of Azimut Group

default

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.
  1. 01

    Investment Focus

    We focus on private markets firms in the lower middle market with proven investment expertise, strong management and attractive growth prospects.
  2. 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.
  3. 03

    Tailored Transactions

    We customize each transaction to satisfy the needs of our affiliate partners.
  4. 04

    Post-Investment Value Creation

    Focus areas include capital formation, strategy and development, operational management, and business sustainability.

Value Creation

icon

Capital Formation

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

Business Strategy

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

Operational Advisory

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

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

icon

Growth Capital

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

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
icon

Capital Structure Reorganization

  • Buy out external shareholders or retired partners
  • Retire loans
icon

Succession Planning

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

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.

News

Discover all our news and don't miss any event.
Sources
  1. 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.
  2. 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.
  3. 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.