Hunter Point Capital beats target to raise $3.3bn for its inaugural GP stakes fund

April 2, 2024 (Preqin News) – US-based Hunter Point Capital (HPC) has closed its first fund above target at $3.3bn, making it the largest first-time fund to close in the last 12 months, according to Preqin data.

HPC I exceeded its initial target of $2.5bn, raising capital from high-net-worth individuals, and institutional investors, including sovereign wealth funds, public pension funds, and banks.

The fund will target investments in GPs in North America, Asia, and Europe across private equity, private credit, real estate, and infrastructure.

‘We believe these LPs have recognized that there is growing demand among an exceptional group of investment management firms for a partner that can help them seize opportunities and face the challenges of growth over the coming decades,’ Avi Kalichstein, the firm’s CEO and Co-Founder, said in a statement announcing the fund close.

So far, HPC has made partnerships with eight investment management firms, including London-based secondaries manager Coller Capital, New York-based private debt firm SLR Capital Partners, and hedge fund manager Iron Park Capital Partners.

Sometimes known as ‘funds of firms’, GP stakes funds seek to use LP-raised capital to invest in other GPs – taking a share of management fees and carried interest.

A combination of a challenging macroeconomic environment and fewer private equity exits, alongside growing investor awareness of and demand for alternative investments, has created a fertile environment for GP-stake sales in recent years. In addition to providing selling GPs with growth capital, benefits from external investment also include business development and talent enhancement advice.

The largest GP stakes fund, Dyal Capital Partners V, raised by Blue Owl Capital, closed at $12.9bn in December 2022. The firm is currently raising a sixth GP stakes fund with a target size of $13bn.

‘While traditional fund structures are likely to remain the primary way for investors to seek exposure to private equity, investing in GP equity provides an alternative,’ Cameron Joyce, SVP, Research Insights, wrote in the Preqin 2024 Global Report: Private Equity. The trend of GPs selling stakes – either to private investors, dedicated GP stakes funds, or via listing on the stock market – is expected to continue, he added.

In addition to its fund close, HPC also announced it has launched a GP Financing Solutions platform (GPFS) which ‘offers net asset value-based loans and preferred financing solutions to established GPs’.

HPC was co-founded by Bennett Goodman and Avi Kalichstein in 2020. Goodman previously led GSO Capital Partners – which later became the credit arm of Blackstone Group – and was formerly Managing Partner of Credit Suisse’s Alternative Capital Division. Kalichstein was a Managing Principal at Easterly Partners, before which he launched Solel Investment Group.

_{The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.}