The 2022 vintage fund closed 10% above target
RidgeLake has already completed six deals from the fund
Fund close is further evidence of rising interest in the emerging strategy
January 18, 2024 (Preqin News) – RidgeLake Partners, a strategic partnership between Apogem Capital and Ottawa Avenue Private Capital, has announced the close of a $1.1bn GP stakes fund, that exceeded its target by 10%.
The 2022 vintage fund will focus on acquiring minority stakes in middle-market GPs with assets under management (AUM) of $1–10bn.
RidgeLake aims to make use of the partners’ networks to access investment opportunities, Todd Milligan, co-head of RidgeLake Partners, said in a statement announcing the fund close.
New York-based Apogem was formed in 2022 in a merger between Goldpoint Partners, Madison Capital, and PA Capital. It manages funds in private equity, private debt, infrastructure, and natural resources, and has $37bn of AUM.
Ottawa Avenue is a Michigan-based investment advisor with $17bn of regulatory AUM. It has raised $1.1bn of capital over the past 10 years, according to Preqin Pro.
RidgeLake raised capital from investors including high-net-worth individuals, family offices, wealth management firms, insurance firms, and foundation. It has already completed six deals from the fund, including investments in Sentinel Capital Partners, Gauge Capital, and Shamrock Capital.
GP stakes are an emerging strategy in private markets, though many large, sophisticated investors, especially sovereign wealth funds, have previously bought stakes in the GPs with whom they invest. Paris-based Armen, one of the first movers in the GP stakes field, held a $150mn first close of its maiden fund in March 2023. Armen GP Stakes I has a €400mn target.
A 2023 report by Coller Capital showed that investors are optimistic about GP stakes investments. Among the LPs surveyed, 27% said that investments in funds that acquire GP management companies had exceeded expectations, while 64% said that their expectations had been met and only 9% said that they had not been met.
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