Wafra Strategic Investors is buying a 10% passive interest in TowerBrook Capital Partners, said sources close to the matter.
Wafra Strategic Investors is a fund managed by the alternative investment division of Wafra Investment Advisory Group, a $15 billion money management firm owned by the Public Institution for Social Security of Kuwait.
TowerBrook Capital Partners, an $8 billion private equity firm, is selling the stake, in part, to invest additional capital in portfolio companies held by its $3.5 billion fourth fund, the sources said.
Investors in TowerBrook Capital Partners IV include $103.6 billion Washington State Investment Board, $178.8 billion Florida State Board of Administration and C$234.4 billion ($196.1 billion) Canada Pension Plan Investment Board.
The capital also will be used to help TowerBrook accelerate investments, pursue additional investment opportunities and attract additional talent, one of the sources said.
TowerBrook executives are in the process of contacting investors and seeking approval from Fund IV’s advisory committee.
Wafra Investment Advisory Group’s alternative investment division buys interests in private equity funds and hedge funds.