Northern Lights Capital Group acquired a minority equity interest in Aldenwood Group, a start-up specializing in private equity secondary investments, in a primarily capital partnership.
Terms weren’t disclosed.
Aldenwood was founded in October 2009 by Jamie Hale and Phil Durden, who previously focused on secondary transactions with Oak Hill Investment Management and Lexington Partners, respectively. Messrs. Hale and Durden remain majority owners.
Aldenwood will acquire “limited partnership interests and direct investments in buyout, venture capital, mezzanine, distressed debt, senior credit and other illiquid fund investments,” according to a Northern Lights news release.
In an interview, Mr. Hale said investment opportunities in the secondary market are very interesting now, with prices stabilizing and the growing ranks of institutional investors “looking at their portfolios and doing illiquidity budgeting” creating a “huge flood of sellers.”