Victory Capital invests in Alderwood Partners
Victory Capital Holdings has acquired, through a wholly owned subsidiary, a 15 per cent interest in Alderwood Partners (Alderwood). Financial terms have not been disclosed.
Alderwood’s operating entity, Alderwood Capital, is a London-based investment advisory firm focused on taking minority stakes in specialist boutique asset management businesses. Founded in 2020 by Jonathan Little, Alderwood is planning – subject to regulatory approval - to raise a single fund to deploy its strategy. Victory Capital will have board representation at the general partner level and intends to participate as an investor in the fund.
“This investment in a proven M&A capability provides Victory Capital with a number of compelling strategic advantages,” says David Brown, Chairman and CEO of Victory Capital. “It significantly broadens our international scope for future growth, particularly in the UK and on the European continent. In addition to expanding opportunities for complementary distribution alliances and strategic partnerships leveraging organisational and regulatory platforms in non-US jurisdictions, it also provides attractive return opportunity on our investment.”
“We are very pleased to welcome Victory Capital as partners in our firm,” adds Jonathan Little, Founder and Managing Partner at Alderwood. “I’ve long been an admirer of David Brown and the Victory Capital team. Victory Capital has an excellent record of supporting businesses over the long term and providing wise counsel to the management teams it backs. It is a hugely credible investor and strategic partner, and we look forward to developing our relationship over the long term. Our organisations have strong cultural alignment, and we share the view that active management in focused firms will continue to generate robust cash flow and attractive risk-adjusted IRR.”
Prior to founding Alderwood, Little was Founder and Managing Partner of Northill Capital, an asset management firm acquiring majority stakes in specialist asset management firms around the world. Before that, Jonathan Little served as Global Co-Head of Asset and Wealth Management at BNY Mellon, where he also served as Vice Chairman of the Asset Management Business and Chairman of the Dreyfus Corporation; and, was Chairman of Insight Investment Management. Earlier in his career, he was Head of International Funds and Sub-Advisory at JP Morgan Investment Management and held key roles at Fidelity Investments International.