Launched in 2019, Investcorp’s Strategic Capital Group (ISCG) seeks to execute an investment strategy focused on acquiring minority interests in alternative asset managers, particularly GPs who manage longer-duration private capital strategies (e.g., private equity, private credit, real estate). ISCG closed Fund I in April, 2022 and now manages $825 million of AUM. ISCG has also completed 9 investments since inception.
Through our New York-based team, we focus on GPs with strong track records, exceptional teams, and attractive growth prospects. We target well-established mid-sized alternative asset managers who have the resources and infrastructure to attract the best talent, retain large, sophisticated investors, and build a lasting business.
The Strategic Capital Group is well-suited to execute the investment strategy. We are a team of seasoned professionals with a history of working together and broad experience originating, structuring, and executing transactions across alternative asset management GPs, including proprietary minority stakes. In addition, the team has experience investing as LPs, owning and operating GPs, and working with GPs on strategy, business development, and capital formation. These capabilities are complemented by additional resources from Investcorp, a Strategic Capital Advisory Board and Operating Partner network, and strategic partnerships with Finback Investment Partners, an advisory and merchant banking firm led by former Governor Jeb Bush, and Xponance, an asset management and investment firm focused on emerging manager strategies.
We look to leverage deep relationships developed over many years as principal investors and advisors to identify proprietary investments. We perform rigorous diligence on each investment opportunity through a disciplined process, evaluating GPs across a variety of qualitative and quantitative dimensions including investment excellence, business sustainability and growth profile.
We place an emphasis on the importance of alignment of interest with our management teams. Each investment is negotiated and structured on a case-by-case basis but typically shares non-control positions, minority shareholder protections, and alignment of interest with principals.
We seek to develop a strategy of stakes in high-quality GPs, diversified across investment strategies, geographies, asset classes, and underlying fund vintages. We believe this approach offers clients the potential benefits of diversification.
We view our GP investments as partners and actively collaborate with them post-investment to execute on a customized value creation plan. Our focus areas include capital formation, strategy and development, and operational management and business sustainability.