Navigator Global Investments has agreed to buy minority ownership stakes in six alternative investment managers from funds managed by Dyal Capital Partners, a unit of Neuberger Berman.
Under the agreement, Navigator will acquire stakes in Bardin Hill Investment Partners, Capstone Investment Advisors, CFM, MKP Capital Management, Pinnacle Asset Management and Waterfall Asset Management.
Together, these businesses oversee $35m in assets across 26 diversified investment strategies.
Navigator, the ASX-listed parent of Lighthouse Investment Partners, will purchase the portfolio in two parts.
Under the first part, it will be entitled to get the first $17m of cash distributions yearly alongside 20% of excess cash distributions.
In exchange, Navigator will issue the Dyal funds a 40% economic interest upon completion through ordinary shares and convertible notes.
Following 2025, Navigator will purchase the remainder of the Dyal funds’ interests in the cash distributions for a single redemption payment depending on the performance of the portfolio.
The portfolio will be housed separately to Navigator’s investment in Lighthouse.
Dyal Capital head Michael Rees said: “We are happy these six managers will remain part of the Dyal eco-system and view our indirect interest in the Lighthouse business as an attractive addition which is expected to contribute positively to our investment in the years to come.”
The deal awaits the nod of shareholders and regulators, with completion anticipated by January next year. Navigator expects the deal to be “immediately cash EPS accretive”.
Navigator chair Michael Shepherd said: “We believe this is a compelling transaction with strong commercial logic. The acquisition is an important development in the evolution if Navigator.
“We have long targeted high-quality opportunities to grow and diversify our holdings to generate strong long term shareholder returns.”