New firm plans to partner with high-performing GPs looking to scale and enter new markets.
January 24, 2025 (Preqin News) – Petershill veteran Christian von Schimmelmann has launched PACT Capital, a GP stakes firm focused on middle-market private capital GPs.
Von Schimmelmann worked at Goldman Sachs for nearly 25 years and was Global Co-Head and Investment Committee Co-Chair of Petershill, the GP Stakes and Seeding Business. He has teamed up with Brian Vickery, who was a Partner in McKinsey’s Private Capital Practice, and Jonathan Snider, who was Chief Financial Officer of global real estate investment firm GTIS Partners and also worked in the Alternative Investments and Manager Selection group at Goldman Sachs.
Von Schimmelmann is Managing Partner, Vickery will lead the firm’s imPACT platform, while Snider will be CFO and Chief Compliance Officer.
‘We are focused on partnering with high-performing private capital firms in the middle market and think there is a real opportunity to differentiate ourselves by bringing together a highly experienced team, not just on the investment side but also on the value-add side, on an independent platform,’ von Schimmelmann told Preqin News.
‘A lot of the GP stakes activity to date has been focused on the larger end of the market. We believe that there is significant white space and a huge opportunity in the middle market, which is still in the early innings in terms of penetration and opportunity set.’
Von Schimmelmann said that with a universe of more than 4,000 GPs that have raised more than $500mn over the past 10 years, and around 250 GP stakes deals announced to date, the market for first-time GP stake investments has barely been penetrated, with further opportunities likely through follow-ons and secondary transactions.
Preqin tracks 19 fund managers who have held a close on a GP stakes fund. Successful managers, including Blue Owl Capital, Stone Point Capital, Blackstone Group, Goldman Sachs XIG, and Hunter Point Capital have raised multi-billion funds, the largest being Blue Owl GP Stakes V at $12.9bn. Collectively, these managers have raised $98bn.
Eight of these managers have funds smaller than $500mn, highlighting how fewer players are targeting smaller or earlier-stage investments.
‘In larger deals, most of the focus is on quantum and valuation of capital,’ said von Schimmelmann. ‘In the middle market, it’s about the combination of being a credible partner and having the ability to add more than just capital, because these firms are often looking for strategic support as they consider a second strategy or scaling their broader platform.’
PACT will seek to partner with high-performing private capital firms and help them to achieve their strategic objectives. Headquartered in New York, PACT will invest globally, though von Schimmelmann said he expects a significant proportion of opportunities to be in the US because of the size, sophistication, and maturity of the market.
Vickery said that the firm will use its imPACT platform to assist established and emerging firms in accelerating capital formation, designing and launching new products, improving operations, attracting and retaining talent, leveraging cutting-edge technology, and improving outcomes for underlying portfolio companies.
‘Many middle-market firms are at a point in their lifecycles where they need to consider building out and institutionalizing their platforms. They recognize the need to scale the investment team and back-office functions, think about strategy and product development, all while continuing to produce on behalf of their limited partners,’ he said.
The firm has secured significant strategic anchor investments from Reinsurance Group of America and Sackville Capital, a London-based global investment firm focused on private equity, platform partnerships, and an endowment program. Announcing the investment, Nasir Alsharif, Executive Chairman of Sackville Capital, said: ‘GP stakes is an emerging asset class in which we see positive structural tailwinds and significant long-term potential.’
Additional research by Sabrina Teope, a Senior Associate in Preqin’s Private Capital – AMRS team in New York.
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.