Goldman Sachs’ Petershill unit, which buys stakes in alternative asset managers, has acquired a stake in Incline Equity Partners, a Pittsburgh-based private equity firm, the firms announced Thursday.
While terms of the deal were not disclosed, Incline said it’s a passive, minority investment.
Joining with Goldman gives Incline, which says it has raised about $2.8 billion, access to Goldman’s much larger network of investors for future fundraising and finding new investors.
“This transaction marks the next phase in Incline’s growth,” Jack Glover, managing partner of Incline, said in a statement. “With additional capital and a world-class partner, we look forward to accelerating the execution of our strategy, while continuing to develop the culture and team that have contributed to our success.”
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Goldman, in turn, will get exposure to the general partners of the firm without investing in specific funds.
“Our aim is to partner with best-in-class firms and Incline has developed the investment and organizational capability to be properly recognized as such,” Ali Raissi, co-head of Goldman’s Petershill unit, said in a statement. “We’re looking forward to this partnership and helping Incline realize continued success.”
The Incline investment is the latest move by Goldman’s Petershill unit to acquire a stake in a mid-sized private equity firm. In December, the unit purchased a minority stake in Oak Street Real Estate Capital, a Chicago-based private equity firm that’s bought hundreds of stores, warehouses, and office buildings in sale-leaseback deals with big retailers. And in February, Petershill took a stake in D.C.-based Arlington Capital Partners.
Goldman’s not the only asset manager with a unit taking stakes in alternative investment firms. Petershill competes with Neuberger Berman’s Dyal Capital as well as Blackstone’s Strategic Capital Partners, among others. As Institutional Investor previously reported, such firms are increasingly targeting mid-sized firms, where there’s less competition historically.
Dyal has recently been tied up in court with Sixth Street, one firm that Dyal’s invested in, over a deal Dyal struck to merge with rival Owl Rock Capital and take the combined company public. Earlier this week, a Delaware Chancery Court Judge sided with Dyal, ruling that the deal can continue.
