Barings goes big on US real estate with Artemis acquisition, and more...

The South Carolina Retirement System Investment Commission (RSIC) made $260M in total allocations to two funds in private equity and venture capital, according to materials from its February 13 board meeting. 

The pension committed $60M to middle-market buyout Falfurrias Capital Partners VI and $200M to early-stage venture fund Cendana Sandstorm in deals closed on December 20 and 23 of last year, respectively. Per Dakota data, the RSIC has previously allocated $30M to Falfurrias’ Growth Partners I in 2023.

South Carolina RSIC administers approximately $48B in total plan assets, according to Dakota data.

The Tulare County Employees’ Retirement Association has invited Beach Point to present at its next board meeting for a potential real estate debt allocation.

Per its recently released January 22 board meeting minutes, the California-based pension approved a recommendation by general consultant Verus to hear a presentation from Beach Point Real Estate Debt Fund at the board’s February 26 session, where it will decide on the allocation. The position is intended to fill the pension’s $35M gap within its real estate debt portfolio, where it is underweight after increasing its target allocation in November of last year. Verus said it recommended Beach Point’s closed-end fund to provide diversification in the asset mix alongside incumbent manager Invesco’s open-ended Commercial Mortgage Income Fund. 

As of December 31, 2024, Tulare County’s total portfolio is valued at approximately $2.1B.

The North Dakota State Investment Board (SIB) implemented changes within its domestic equity portfolio as it terminated four incumbent large- and small-cap equity managers while adding a new manager to each roster. 

Materials related to its February 14 board meeting disclosed that the pension terminated large-cap equity managers NTAM Quant Enhanced R1000 and Parametric Enhanced R1000, as well as small-cap managers Riverbridge Small Cap Growth and VCM Sycamore Small Cap Value, while also hiring T. Rowe Price US Structured Research Equity and Wellington Management Small Company 2000. Following the changes, LA Capital Enhanced and Atlanta Capital HQ Small Cap remained existing managers in the pension’s large- and small-cap equity portfolios, respectively. 

As of the latest Dakota data, North Dakota SIB manages $22B in net pension assets.

The Alameda County Employees Retirement Association (ACERA) allocated $60M to Orchard Global Asset Management’s third vintage opportunistic private credit fund. 

According to recently released materials from the pension’s February 5 board meeting, ACERA made the investment to Orchard Global EleganTree Opportunities Fund III within its credit opportunities sleeve. The sub-asset class currently comprises 25% of the private credit composite, with distressed and direct lending respectively accounting for 25% and 50% of the remaining mix. 

General consultant NEPC assisted in the investment report for ACERA, which oversees a portfolio of approximately $11.3B. 

Marsh McLennan consulting subsidiary Mercer announced that it will acquire institutional advisor SECOR Asset Management in a deal representing approximately $13.8B in assets under advisement.

Mercer will integrate over 40 SECOR employees based in New York and London, boosting its capabilities in end-to-end portfolio solutions for institutional investors, including pensions, endowments, and family offices. The SECOR team, led by CIO and founding partner Tony Kao, provides investment advisory and management and fiduciary services. As of September 30, 2024, SECOR said it oversees $21.5B in total AUM.

Mercer is one of four Marsh McLennan businesses, alongside Marsh, Guy Carpenter, and Oliver Wyman, advising clients across 130 countries.

Natixis Wealth Management is acquiring a majority stake in Paris-based boutique fund and wealth manager Dorval Asset Management from sister company Natixis Investment Management in a deal expected to close in the first half of 2025.

Founded in 1993, Dorval manages €1.1B in assets and provides macro- and microeconomic analysis, portfolio construction, European equity strategies, and wealth advisory services. The firms said the move will bolster Natixis Wealth’s collective and discretionary management capabilities, with Natixis Wealth CEO Audrey Koenig adding that Dorval will assist in providing customized investment solutions to wealth investors. As part of the transition, Dorval deputy managing director Frédéric Ponchon will assume the role of managing director, succeeding CEO Jean-Francois Baralon, who is stepping down to pursue other professional opportunities.

Last month, Natixis IM entered a non-binding MOU with Italian insurer Assicurazioni Generali to form a joint venture between their asset management operations, representing €1.9T in combined total AUM. 

Creative Planning announced its acquisition of Pleasanton, CA-based RIA Maxwell Wealth Strategies in a deal that was closed on January 17.

Maxwell Wealth Strategies was founded in 2015 by James Maxwell and offers portfolio management services such as investment strategy, asset allocation, and risk tolerance. The firm reported $290M in AUM as of December 2024. Decerno Advisors served as exclusive advisor and Carter West as legal counsel to Maxwell Wealth Strategies in the transaction.

Maxwell Wealth is the third acquisition by Creative Planning in 2025, following the January purchases of Krivoshein | McDaniels in Washington and Kowal Investment Group in Wisconsin.

Rockefeller Capital Management announced that New York-based Broderick Mingelgreen Wealth Partners has joined its global family office, catering to ultra-high-net-worth clients.

The team has over five decades of combined experience and consists of Managing Director Jack Broderick and private advisors Jason Mingelgreen and John Broderick. Jack Broderick and Mingelgreen had been connected to Stifel since 2015, moving when Stifel acquired Barclays’ US wealth management business.

Jack Broderick has 36 years of industry experience, including 15 years with Credit Suisse and eight years with Lehman Brothers prior to Barclays Capital. Mingelgreen began his career with Barclays in 2012, while John Broderick joined the team in 2021 after spending two years as an investment banking analyst with Credit Suisse.

The team is the fifth to join Rockefeller’s global family office division in 2025 and second in the metro New York market, joining Pollard Bryan Carl Wealth Partners of Sarasota Springs, NY, Blue Lake Wealth Partners of Oak Brook, IL, Heritage Wealth Management of Houston, and Venetos Wealth Partners of New York City.

Raymond James has recruited Matt Schultz, a former LPL advisor managing $160M in client assets, into its independent advisor channel, operating out of Watford, ND.

Schultz joins established Raymond James affiliate Midwest Wealth as its Western division president, serving business owners, families, retirees, women investors, and farmers. According to the Midwest Wealth website, Schultz will be joining Jim Dunkel and his daughter-in-law Sarah Dunkel who left LPL for RayJay in December.

Schultz has nine years of financial management experience. Prior to LPL, he was affiliated with the Investment Centers of America. 

Stephens’ private wealth management division recruited former LPL advisor Curtis Wethington as a financial consultant in its Hot Springs, AR, office.

Wethington has 16 years of industry experience according to his BrokerCheck profile, working for firms such as AIT Wealth Management, Securities America, and Morgan Stanley. He will be providing tailored wealth management advisory services for the Little Rock, AR-based firm’s high-net-worth clients.

Carlyle is hoping to revitalize its global private equity business with the expected second-half launch of its latest flagship private equity fund, Carlyle Partners IX.

During a February 11 earnings call for the alternative investment manager's full-year 2024 results, executives said the private equity business faced headwinds that contributed to a 7% decline in management fees from the prior year. However, they are optimistic that the rate of decline will be "meaningfully lower" for 2025. 

CFO and Head of Corporate Strategy John Redett said Fund IX is expected to "be the catalyst to see our corporate private equity business return to a more positive trajectory." Declining to comment on the size of the new fund, Redett assured that the investment vehicle will hit the market “toward the back end” of 2025, with fee activation to follow at some point in 2026.

Predecessor Carlyle Partners VIII closed at $14.8B in August 2023, raising just over half of its $27B target after two years of fundraising. It received capital commitments from investors including Minnesota State Board of Investments, California Public Employees' Retirement Systems and State of Michigan Investment Board, according to Dakota data, and based on a January 2023 filing with the SEC, Fund VIII attracted at least 246 investors.

Despite the underperformance of its private equity business in recent years, Carlyle noted that its last two US buyout funds performed well in 2024, appreciating a combined $5B in value, and providing grounds for optimism about 2025. 

CEO Harvey Schwartz said there is strong global demand for Carlyle solutions, adding that the group is tapping new distribution partners in preparation for future launches. "In conclusion, we wrapped up a solid 2024, and we anticipate a strong year of investment activity realizations and fundraising in '25." 

Madison River Capital, which was spun off from the family office of former Blackstone President and COO Tony James, secured $370M in capital commitments at the final close of its first institutional fund, Madison River Capital Fund I.

The fund generated support from family offices and institutional investors, among other backers, according to a February 18 news release. In the lower middle market private equity firm’s most recent SEC filings for the fund from July 2024, it reported $177.6M in sales from 31 investors. 

The fundraising was Madison River's first since it was spun off from Jefferson River Capital, Tony James’ family office. The firm is now under the leadership of David Wittels, who previously led the corporate private equity investment team at Jefferson River.

Fund I executes control buyout investments in the lower middle market, with a focus on the healthcare services, industrials and business services sectors. So far, its portfolio includes mental health services provider Senior Care Therapy and electrical systems integrator JDC Power Systems.

With a $7.4M allocation for sales commissions, Madison River tapped Shorebridge Capital Securities to help promote the fund across 12 states in the US and Stifel, Nicolaus & Co. for the entirety of the US. Gibson Dunn & Crutcher served as legal counsel for the fundraising.

Strategic Value Partners is aiming to raise $6.5B for its latest distressed credit fund, according to a report from Buyouts Insider.

The private credit-focused investment firm filed for Strategic Value Special Situations Fund VI with the SEC in December 2024. The investment vehicle is planned to remain open for subscription for more than a year, with J.P. Morgan Securities tapped to assist with its marketing. The fund's predecessor, Strategic Value Special Situations Fund V, closed in August 2021 at its $5B hard cap.

Fund VI has so far secured capital commitments from the New Jersey Division of Investment and the City of San Jose Police and Fire Department Retirement, according to Dakota data.

With AUM of over $18B, Strategic Value targets opportunistic credit and private equity opportunities in North America and Europe. Since its establishment in 2001, the Greenwich, CT-based firm said it has invested more than $48B.

Neuberger Berman secured $1.6B in total capital commitments for its third specialty finance fund, marking an oversubscription against its $1B target.

NB Specialty Finance Fund III received commitments from over 40 institutions across the US, Canada, the Middle East and East Asia, including public and private pensions, insurance companies, foundations and RIAs. 

The employee-owned investment manager opened Fund III for subscription on April 14, 2023. As of a year later, the fund had raised $465.1M from 21 investors, according to an amended filing with the SEC. Neuberger Berman BD and Jefferies helped market the fund across the US.

At closing, the fund is already 45% deployed. It targets opportunities in the asset-based finance market, with a focus on sectors including receivables, small business, consumer and hard assets. 

Under its specialty finance platform, Neuberger Berman manages $4B of assets across a portfolio of over 50 companies and investment vehicles. Neuberger Berman operates the platform from offices in New York, Redwood City, CA, London and Tel Aviv. Across its entire group, the firm manages $508B of equities, fixed income, private equity, real estate and hedge funds on behalf of global institutions, advisors and individuals. 

KKR announced on February 14 that it closed its sophomore real estate credit-focused flagship private fund with capital commitments totaling $850M across the commingled investment vehicle and its companion funds.

KKR Opportunistic Real Estate Credit Fund II made its first sale in February 2023, obtaining $150.5M from a single investor, according to an August 2024 amended filing for the fund with the SEC. According to Dakota data, the fund received a pledge of a similar amount from the Massachusetts Pension Reserves Investment Management (Mass PRIM).

Guided by a flexible mandate, the fund will target senior loans and real estate securities in the US and Western Europe with the potential to generate attractive risk-adjusted returns. The fund is part of the global investment firm's real estate platform, through which it owns or lends on $261B of assets. Under the platform, it reported $80B of AUM, as at the end of the third quarter of 2024.

Enterprise software investment firm Cuadrilla Capital's AUM surpassed $500M after the closing of its sophomore flagship fund, fundraising advisor DLA Piper said February 13.

Cuadrilla Capital Fund II opened for sale in February 2024. An amended filing with the SEC showed that as of January 10, 2025, the fund had received commitments totaling $300M from 33 investors. Pacenote Capital assisted in marketing the fund across 22 states in the US. DLA Piper noted that the capital commitments for the buyout fund included those secured through related co-investment vehicles.

In line with the Santa Barbara, CA-based firm's strategy, Fund II will invest in software as a service companies with the potential to generate accelerated growth and long-term success. Specifically, it targets companies with core annual recurring revenue in the $8M to $28M range.

In January, Cuadrilla expanded its portfolio with the separate purchases of retail execution software platform Repsly and intelligent network automation company Gluware. Previous investments include Agilence, Chartbeat, Infodesk, Intelliq and Tubular.

Greenfield Partners announced on February 18 that its AUM surpassed $1B after it received $400M in new capital commitments from new investors in the US, Europe and Asia-Pacific, primarily for its third growth equity fund. 

Greenfield Partners Fund III opened up for subscription on June 16, 2023. As of May 15, 2024, the investment vehicle had raised $247.7M from 29 investors, according to a filing with SEC. Catalyst D&L helped market the fund outside the US, with $50K allocated for sales commissions.

The early growth investor said most of the fresh capital will be deployed through Fund III, which will target exceptional enterprise-focused early growth technology companies. The fund's predecessor, Greenfield Partners Fund II, invested in series B and C funding rounds of 13 early-growth companies in the cybersecurity, artificial intelligence, IT infrastructure, data infrastructure, financial technology, internet and digital media, deep tech, and enterprise Software-as-a-Service sectors.

Along with the completion of the fundraising, the firm also opened its office in New York City. “This new capital and the opening of our New York office enable us to continue executing this mission on a global level," Managing Partner Shay Grinfeld said in a statement. Greenfield was initially established in 2016 as a TPG growth investment platform focused on disruptive technology at the early growth stage and was spun out in 2020 as an independent fund.

Since its establishment in 2016, Greenfield Partners has raised $3B of capital through its portfolio companies and created $12B in enterprise value. The firm's portfolio includes Vast, Torqe, BigPanda, Guardicore, Oligo, Exodigo and Silverfort.

American Real Estate Partners (AREP) announced on February 18 that it secured $309M in commitments at the completion of the fundraise for its fourth GP-led real estate fund, AREP Strategic Opportunity Fund IV.

Oversubscribed at closing, Fund IV became the largest of the institutional real estate fund manager's funds, surpassing AREP Strategic Opportunity Fund III, which closed in 2022 with $63M in equity commitments.

Fund IV attracted commitments from institutional investors and high-net-worth individuals, among other backers. According to a filing with the SEC, the fund had raised $301.6M from 56 investors as of February 12, 2025. It opened up for subscription on January 30, 2024, with the minimum investment amount set at $100K.

AREP earmarked 80% of the fund's capital for its data center platform, PowerHouse. Through the investment vehicle, the firm hopes to capitalize on the growing demand for data infrastructure, as well as other popular sectors such as data centers and residential.

Since its establishment in 2003, AREP has executed over $13B acquisitions, building a portfolio spanning over 34 million square feet across key markets in the US. The firm focuses on data center, residential, industrial, and office assets.

Lithuanian investment manager Invalda INVL Group raised €305M (~$319.6M) at the first close of its second-generation private equity fund, making the investment vehicle the largest of its kind in the Baltics, according to the firm.

With a target of €250M (~$262M), INVL Private Equity Fund II is already oversubscribed and is on track to reach its €400M hard cap. The alternative funds manager set the minimum investment at €10M (~$10.5M) but opened the vehicle for tickets as low as €125M (~$274.6M)through INVL Private Equity Capital Fund II.

The fund generated support from new and existing investors, including entrepreneurs across the Baltics and family offices. Institutional investors like the European Investment Fund, Luminor-managed pension funds, SB Asset Management, IPAS INVL Asset Management and life insurance company UAB SB Draudimas also participated in the fundraising. According to a February 17 news release, Invalda INVL and the management team behind the fund contributed €32.7M (~$34.3M) to the fundraise.

The fund will target businesses across Lithuania, Latvia, Estonia, Poland, Romania and the broader European Union. It is sector-agnostic and will focus on businesses with the potential to succeed in competitive industries.

Fairview Partners held an initial close for its latest distressed debt fund with $75M of anchor commitments secured, bringing the fundraising closer to its $250M target.

The boutique debt fund manager said Fairview Investment Fund VIII is on track to be its largest capital raise. The fund's predecessor, Fairview Investment Fund VII, had a target of $150M, according to a filing with the SEC.

Fairview Partners focuses on the purchase and origination of senior secured real estate loans. It capitalizes on investment opportunities in opaque markets, particularly those supported with active management and credit structures aimed at equity level returns with debt levels of risk. 

The fund will follow its manager's strategy and target distressed debt and small- to mid-balance loans as it attempts to build a diversified portfolio of real estate-backed loans. It will invest across the US.

According to its website, the debt manager ended 2024 with $708.3M in capital invested across 496 transactions carried out through 10 managed funds. 

StepStone Group announced on February 13 that it obtained regulatory approvals to launch European long-term investment funds (Eltif) that will make private credit investments available to wealth investors in the EU.

The global private markets investment firm said its planned Eltif 2.0-compliant funds will support its strategic expansion in Europe. "With these approvals in place, we will now be able to deliver institutional-grade investments better tailored to the dynamics of European wealth platforms," commented StepStone Private Wealth President of Distribution Neil Menard. StepStone will initially market its Eltifs in Italy, Spain, Germany, France and the Nordic and Benelux regions.

StepStone's private debt platform oversees $51B in capital as of year-end 2024. Strategies under this platform target corporate, real estate, infrastructure, and credit specialties transactions. The firm joins the growing list of investors gunning for a slice of the European wealth market for private market investments via Eltif 2.0, including JP Morgan Asset Management, AXA Investment Managers and BlackRock.

Brookfield Oaktree Wealth Solutions announced the launch of a new fund providing Australian wholesale investors access to Oaktree’s diversified strategic credit portfolio.

Oaktree Strategic Credit Fund (AUD) will primarily deal in private credit investments with selective allocations to public credit. The fund represents the firm’s first evergreen credit fund for investors in Australia, who “are looking to private credit investments to diversify their portfolio and generate stable current income with long-term capital appreciation potential,” according to Brookfield Oaktree Head of International Jeremy Hall. The fund will be managed by Oaktree and distributed by Brookfield. 

Sydney-based firm Channel Investment Management Limited serves as the fund’s responsible entity and investment manager.

Barings has entered into a definitive agreement to acquire $11B real estate investment firm Artemis Real Estate Partners in a transaction that is set to close in the first quarter of 2025.

The acquisition of the Washington, D.C.-based firm aims to bolster Baring's presence in the US real estate market and accelerate long-term growth by combining the firms’ investment capabilities and expertise. Artemis makes equity and debt investments across the US in core, core plus, value add, and opportunistic real estate. Founded in 2009 by Deborah Harmon and Penny Pritzker, Artemis is a majority women-owned firm with 38 professionals operating from the District and offices in New York, Atlanta, and Los Angeles, according to its website.

Dechert LLP served as legal counsel to Barings in the transaction, for which financial terms were not disclosed. Berkshire Global Advisors served as financial advisor and Paul Hastings LLP acted as legal counsel to Artemis.

Barings said its global real estate platform has more than $50B in AUM, including $28B in global real estate debt. The acquisition of Artemis follows a January disclosure by Barings that its Real Estate Debt Income Fund, which is currently in the market, has raised $1.22B from 25 investors.

Carlyle intends to increase its global wealth distribution workforce by at least 50% in 2025, following a year in which it increased headcount by a third and reaped record inflows. 

When reporting 2024 earnings, Carlyle said its global wealth business grew AUM by 65% in 2024 on record inflows of $4.5B, and John Redett, CFO and head of corporate strategy, said the firm intends to continue to invest heavily in the business in 2025. "We are clearly investing in wealth, and that's largely headcount. That headcount will be up 50% at least in 2025," he said during the company’s February 11 earnings call.

The move follows a year in which Carlyle has introduced new products targeting the wealth market, including the June launch of a new evergreen private markets strategy, Carlyle Alpinvest Private Markets SICAV, providing non-US investors with access to a global portfolio of private markets investments. Redett said Carlyle will focus investment on high-growth areas like wealth in the coming year. "I would describe the way we're thinking about aggressively investing is we're investing in businesses where we see growth in businesses, quite frankly. Where growth is less evident in the near term, we're not making investments.”

Aside from wealth, those areas include credit and direct lending, as well as Japan. "We expect 2025 to be a year of growth and increased investment across our core businesses, including global wealth, global credit and solutions,” Redett said. “We expect [fee-related earnings] to increase 6% compared to 2024.”

Stockholm-based investment firm EQT has appointed Per Franzen as its new CEO and managing partner, effective as of the annual shareholder’s meeting on May 27, succeeding Christian Sinding.

Sinding will remain as CEO and managing partner during the transition period, after which he will become an institutional partner. Sinding joined EQT in 1998 and became CEO in 2019. As an institutional partner, he will lead the newly-formed EQT Council as well as the firm’s global investment forum.

Franzen joined EQT in 2007 and currently serves as EQT’s head of private capital in Europe and North America as well as a deputy managing partner. Franzen recently led the raise of €22B EQT X, the largest private equity fund closed globally in 2024. He has been a board member at firms such as IVC Evidensia, IFS, and Morgan Stanley.

Blackstone and Corsair Capital are reportedly considering selling a significant stake in First Eagle Investment Management for more than $4B, according to a February 14 report by the Financial Times, citing sources knowledgeable with the matter.

According to the report, Blackstone and Corsair have tapped Morgan Stanley to oversee the sales process. The firms jointly acquired First Eagle, which is reportedly generating $500M in annual EBITDA, in 2015. First Eagle last month announced a collaboration with Amundi to launch a new private credit fund.

Sources told the publication that the move by Blackstone and Corsair aims to capitalize on the uptick in M&A activity and valuations in the asset management space, as more private equity and financial firms target fee-based businesses.

Easterly Asset Management announced the recruitment of Paul Citarell, formerly senior vice president at John Hancock Investment Management, as senior vice president of sales responsible for the Northeast US region.

Citarell will be responsible for handling the firm’s distribution strategy in the region, focusing on cultivating and managing client relationships across Easterly’s mutual funds and private market offerings. He will report to head of sales Phil Juliano, Jr.

According to his BrokerCheck data, Citarell has more than three decades of sales experience, starting his career at Colonial Investment in 1999. He was more recently affiliated with Nuveen and Fisher Investments, per his LinkedIn profile.

BlackRock Municipal Income Fund has officially delisted from the New York Stock Exchange in its bid to revamp into an unlisted, continuously-offered fund for institutional investors with a quarterly repurchase feature. 

Dakota previously reported that the fund will transition to a closed-end interval fund structure under the new name BlackRock Municipal Credit Alpha Portfolio after conversion, and will begin the initial repurchase offer in the second quarter. Shares from the municipal income fund will also be redesignated as interval fund institutional shares following the conversion. 

BlackRock said the fund will begin its conversion after close of business on March 21 and expects to complete the process on March 24 as planned. As of its December 26, 2024, SEC filing, the fund holds $940.2M in total assets.

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