An investor looking for exposure to alternative assets generally invests in alternative investment funds and may also co-invest in the funds’ portfolio companies. But a third option has hove into the public spotlight in the last decade: investing in the fund managers themselves. This is a relatively new and fast-growing part of the asset class known as GP stakes investing, and it is the subject of this article, which is the first in a two-part series.
What is “GP stakes investing”?
A GP stakes investment is the direct acquisition of a minority equity position in an alternative asset manager; in other words, making an investment in the fund sponsor as opposed to in (or alongside) the fund itself.
MJ Hudson works with clients in the fields of law, international administration, fund management, investment advisory, and IR and marketing, across both alternative and traditional asset classes.Gresham House Strategic PLC (LON:GHS) has a 1.3% ownership of MJ Hudson as of June 2018.
