US buyout firm Charlesbank Capital Partners has agreed to acquire a stake in Canadian secondaries manager Overbay Capital Partners in a deal that values the firm at about CAD200m ($147m), according to a report by Bloomberg citing people familiar with the matter.
Boston-based Charlesbank will make the strategic investment from its funds, while Toronto-based Overbay will remain a significant long-term shareholder and retain full control over its investment activities, according to a statement. Financial terms of the transaction were not disclosed and the deal is expected to close by mid-year.
Overbay, founded in 2016 by Chief Executive Robert McGrath, manages about $3bn in assets and invests across sectors including technology and sports. McGrath said the partnership would support the firm’s next phase of growth, helping strengthen capabilities in areas such as data, analytics, artificial intelligence, and investor relations, while also supporting talent recruitment.
The investment comes as activity in the private equity secondaries market accelerates. Transaction volumes rose 41% last year to $226bn, according to Evercore, as higher interest rates slowed traditional dealmaking and reduced distributions to investors.
Traditional buyout firms have increasingly targeted the secondaries market through acquisitions or internal expansion. Earlier this year, EQT agreed to acquire Coller Capital for $3.2bn to expand its presence in the segment.
Charlesbank, which was founded in 1998 following its spin-out from Harvard Management Company, oversees about $20bn in assets across buyout and credit strategies.
