Xponance and Investcorp are partnering to increase access to strategic capital and other resources for diverse and woman-owned alternative asset managers they believe “have been historically overlooked,” the companies said Tuesday in a news release.
Through the venture, the firms seek to combine Xponance’s experience seeding, sourcing and nurturing relationships with money managers with Investcorp’s pipeline of general partners and experience sourcing, structuring and underwriting in the alternatives management sector to connect investors to diverse and women-owned managers, provide increased seed capital, and offer expertise and guidance to emerging managers.
“We expect to benefit from each other’s network of relationships,” said Investcorp co-CEO Rishi Kapoor in a Zoom interview conducted Wednesday. “We are getting the ability to leverage Xponance’s network to expand our tunnel of GPs. Beyond that, it’s a platform where Xponance is able to amplify and gain exposure to diverse-led GPs.”
Mr. Kapoor added that Investcorp can also add value by sharing the firm’s experience and expertise “to help managers shape their journey.”
“Our networks are highly complementary,” said Xponance founder and CEO Tina Byles Williams in the same interview. “When we evaluated the pipeline of Investcorp’s midmarket GPs, what was clear to me is they felt the same way, because there was a robust representation of diverse GPs in their pipeline.”
Ms. Williams added: “We believe diversity is not just a nice thing to have, it’s a competitive advantage.”
The partnership is being launched through Xponance’s alternatives subsidiary Xponance Alts Solutions and Investcorp’s strategic capital group. Investcorp’s strategic capital group was launched in 2019 to be a long-term strategic partner to midsize alternative asset managers, with a focus on GPs believed to be poised for growth. Xponance formed XAlts this year to provide direct capital solutions to emerging and diverse alternative managers.