Hunter Point Capital

Hunter Point Capital (HPC) is an investment firm focused on securing minority stakes in middle-market alternative asset managers specializing in private equity, credit, real estate, and infrastructure strategies. HPC is led by Bennett Goodman of GSO Capital Partners and Avi Kalichstein, who previously led Easterly Partners Group’s managed accounts division.

Churchill’s partnership with HPC enhances its existing private equity and junior capital (“PEJC”) platform, providing access to new fund opportunities via general partner stakes investing.

About Hunter Point Capital

Hunter Point Capital (“HPC”) is an independent investment firm committed to providing capital solutions to alternative asset managers. HPC seeks minority stakes in middle-market alternative asset management firms focused on private equity, credit, and real estate strategies in North America, Europe, and Asia.

HPC was established in 2020 by Bennett Goodman (Co-Founder of GSO Capital Partners – Blackstone’s direct lending platform, which now manages $125 billion), Avi Kalichstein (formerly Managing Principal at Easterly LLC and Partner at J.C. Flowers), and Mike Arpey who serves as President.

Houlihan Lokey served as exclusive financial advisor for Hunter Point Capital’s acquisition of a minority GP Stake in MidOcean Partners, the first such purchase by HPC as an investor looking for middle-market alternative asset managers GP stakes.

Churchill’s PEJC team should gain exposure to the high-growth business of GP stakes investing and gain additional access to middle-market private equity relationships through this acquisition. Furthermore, the deal should further bolster Churchill’s support of the TIAA General Account’s diverse portfolio of investments.

L Catterton, the leading global consumer-focused investment firm, today announced a strategic alliance with Hunter Point Capital (“HPC”), an independent investment firm dedicated to purchasing minority stakes from general partners (GPs) managing private equity funds.

Hunter Point Capital was established in 2020 by Bennett Goodman (Co-Founder at GSO Capital Partners, now Blackstone Credit) and Avi Kalichstein (formerly Managing Principal at Easterly LLC and Partner with J.C. Flowers). Their team’s focus lies in acquiring minority stakes in middle-market alternative asset managers that specialize in private equity, credit, and real estate strategies across North America, Europe, and Asia.

GP Stakes Investing

GP stakes investors typically seek an expected annual cash yield between 8-15% plus an overall gross 2.5-3.0x multiple of invested capital (MOIC). They hope for this total return from management fees, carried interest payments, and co-investments, realizing their real value over time.

Direct equity investments typically require at least $20 million to enter. In contrast, GP stakes investments give investors access to returns from all funds and accounts managed by the GP management company while also helping diversify risk across multiple strategies and managers.

Fundraising for GP stakes has seen an explosion of fundraising over recent years, raising over $20 billion last year alone. This phenomenon can be attributed to increasing capital constraints from Limited Partners and renewed interest in alternative asset managers. New dedicated GP stakes fund products have emerged to meet this growing demand, like Dyal Capital Partners’ product, Goldman Sachs AIMS group AIMS group, and Petershill Group products to facilitate this trend.

As the market matures, GP stakes investors target mid-size alternative asset managers who need capital for various purposes. To attract money, they offer diversified income streams with clear exit paths.

An investment in GP stakes can provide the right combination of capital and control for strategic investors but requires careful evaluation of operational competency and negotiation of complex deal terms. Buyers should especially pay attention when making this type of purchase during economic instability.

GP stakes buyers must understand all aspects of a manager’s business from all perspectives – including relationships between limited partners (LPs), culture and incentives, and revenue generation methods. They will assess everything from compensation dynamics to how the manager identifies opportunities and allocates resources.

Investors, particularly newcomers to this form of investing, find GP stakes investments a relatively novel prospect that requires great care in making an assessment and selecting investments accordingly. Most deals remain confidential. Michael Shedosky, who headed up Wafra’s GP stakes business before starting up Morgan Stanley’s counterpart, stated that their team prioritizes managers needing additional capital for growth or strategic goals as they evaluate candidates to work with.

GP Financing Solutions

GP stakes are an integral component of the investment community, providing access to top-performing private equity and venture capital managers. At times, however, additional capital may be necessary to meet goals or obligations to limited partners (LPs). Hunter Point Capital has an established history of working with GPs in these instances by offering term financing to capital calls as part of our GP Financing Solutions business unit – explicitly designed to expand capital solutions available to highly performing investment managers.

As volatility has increased and many GPs face funding life constraints, it has become more frequent to see them looking for alternative liquidity solutions. This may come about in various forms, such as:

Some general partners (GPs) need financing solutions to refinance debt or bridge to the end of their fund cycle. In contrast, others require equity investment capital for general partner equity investments. We work closely with them to provide creative liquidity solutions to meet their obligations and reach their objectives.

Additionally, general partners (GPs) often make commitments and payments to limited partners (LPs), including fee waivers or carry. While such arrangements are usually permissible under ILPA guidelines, they do not align investors’ interests properly and may not be in the best interest of the overall fund.

Financially sound General Practitioners often rely on external debt to fund their commitments, which helps avoid dilution while offering commercially acceptable terms. Furthermore, using debt allows GPs to leverage existing assets and provides flexibility as they expand their businesses.

HPC’s launch of its GP Financing Solutions platform signals investors’ recognition that NAV-based loans and preferred financing solutions can effectively support transactions led by general partners (GPs). Furthermore, it reflects their increasing recognition that this financing offers excellent potential to create value for their investors and broader enterprises.

Investors

Hunter Point Capital is an independent investment firm that makes minority investments in middle-market alternative asset managers. The firm seeks long-term strategic partnerships with asset managers who possess proven potential and may become tomorrow’s global investment firms.

Hunter Points invests in private equity, credit, real estate, and infrastructure markets. The firm targets managers with proven track records, strong balance sheets, and experienced leadership teams as GP stake investments. Furthermore, Hunter Points provides additional value-added services such as capital formation services, strategic advice, and LP capital solutions to its portfolio companies.

Investors looking for more information about a company should visit its website to view its profile page, which features vital financial figures like annual revenues and profit margins and information about its executive team’s job titles and responsibilities. Furthermore, investors who want to connect with them can utilize the contact information provided.

Headquarters for this company can be found in New York, NY, and employ over 350 individuals. Employees receive competitive compensation packages, including base salary and bonus opportunities, healthcare benefits, and healthcare plans. Furthermore, this organization also offers employees a 401(k) plan and life insurance policies.

Before investing with Hunter Point Capital, investors should seek the advice of their tax advisor in order to determine whether their investment is tax deductible and assess any associated fees and expenses.

Since 2020, this company has focused on acquiring minority investments in middle-market alternative asset managers. Specializing in private equity, credit, and real estate investing, their portfolio comprises over 60 investment funds across North America, Europe, and Asia; additionally, they provide advisory services to private funds.

Bennett Goodman and Avi Kalichstein founded Easterly Partners Group together. Goodman brings over 35 years of experience to the table; co-founding GSO Capital Partners as one of the world’s premier credit platforms and serving as managing principal at Easterly Partners Group, which specializes in investing and building asset management firms, were among his achievements.