BharCap Partners has completed its spin-out from Pine Brook Road Partners and launched a financial services sector-focused independent private investment firm with $1.8bn of capital.

The private investment firm targets sub-sectors including specialty finance; asset and wealth management; insurance and insurance services; financial technology and tech-enabled business services.

BharCap can invest across the capital structure from senior secured debt to common equity and can back existing entities or launch new businesses.

At the same time, it can offer long duration commitments to select specialty finance companies as well as other asset generators.

The firm eyes investments of between $50m and $350m.

Pine Brook CEO Howard Newman said: “The BharCap team did a great job for Pine Brook for several years, including during the pandemic over the past year.

“They will remain involved with their Pine Brook portfolio companies, which will allow Pine Brook to manage its portfolio without interruption and will give our portfolio companies continued access to these talented investors.”

BharCap was set up by Bharath Srikrishnan, Ethan Wang, Jim Rutherfurd1, Kevin Becker and Ryan Gean. All of them were formerly Pine Brook employees.

Srikrishnan will continue to spearhead the Financial Services investment team.

Of BharCap’s $1.8bn capital, $352m represents funded assets under management, $318m represents unfunded allocations to existing portfolio companies and $1.1bn is for new investments.

Srikrishnan noted: “We look forward to continuing to back great executives seeking to capitalise on powerful industry trends in the financial services industry.

“We are proud that BharCap will represent a sizable, new minority-owned investment firm.”