State Street Investment Management has acquired a minority investment in Coller Capital, one of the world’s largest private market secondaries managers.
The firms jointly stated that they have also reached an agreement to collaborate across “a variety of client segments to drive innovation and broaden each firm’s reach”.
State Street IM said the investment will enable its clients to benefit from access to Coller’s extensive capabilities in private equity and private credit secondaries.
State Street IM currently manages more than $5trn (€4.3trn) in assets for clients in more than 60 countries around the world. This relationship advances State Street IM’s strategy to expand into private markets by partnering with leading alternative asset managers, the firm added.
Coller said it has a “35-year history of leadership and innovation in private market secondaries” and currently manages more than $46bn of secondaries assets across its institutional closed-end funds and its perpetual funds open to professional and qualified individual investors.
Coller added that State Street’s investment and subsequent collaboration will support its long-term growth strategy, “expanding access to secondaries to a broader range of investors and markets”.
Yie-Hsin Hung, chief executive officer of State Street IM, said: “Across the industry, institutional investors and the individual clients need diversification and differentiated investment options, and secondaries and private markets represent an important and growing opportunity.
“This investment and strategic relationship – bringing to our clients the leading secondaries capabilities that Coller has pioneered – exemplifies our broader commitment to clients to provide innovative solutions and better outcomes.”
Jeremy Coller, chief investment officer and managing partner of Coller Capital, added: “State Street Investment Management is trusted by investors of all kinds around the world. We’re excited to be working together to broaden access to the secondaries market, helping those investors unlock its potential for portfolio diversification and long-term returns.”
This strategic minority investment by State Street IM will not change the investment process or day-to-day management of Coller Capital, the pair said, adding that the proceeds from the transaction will be reinvested into the Coller business.
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