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ArcLight Capital sells stake to GSAM, Kuwaiti fund

Goldman Sachs headquarters, New York
Goldman Sachs headquarters in New York

ArcLight Capital Partners has sold a passive minority stake in the firm to Goldman Sachs Asset Management's Petershill program and to Wafra Investment Advisory Group, according to a Jan. 12 memo by managing partner Daniel R. Revers obtained by Pensions & Investments.

The size of the stake was not disclosed.

GSAM's Petershill business takes minority stakes in hedge funds and private equity firms. This is GSAM's second minority stake in a private equity firm; the first was in Littlejohn & Co. in August.

Wafra Investment Advisory Group is a $15 billion money management firm owned by the Public Institution for Social Security of Kuwait. In January 2015, Wafra acquired a 10% passive interest in private equity firm TowerBrook Capital Partners.

ArcLight also sold another interest to an unidentified large, U.S.-based family office that was smaller than the stake GSAM and Wafra acquired.

“We believe partnering with these world-class, highly respected organizations will further strengthen the firm and its capabilities, and position it for future success,” the memo said. “None of our new investors will receive any special treatment as limited partners for any current or future ArcLight funds.”

Proceeds of the sale will be used to fund current and future general partner commitments to ArcLight funds, as well as to facilitate leadership succession at the firm, Mr. Revers wrote.

Andrew Williams, GSAM spokesman declined comment. Matt Nelson, ArcLight managing director, investor relations, could not be immediately reached.