Capital Constellation Offers Co-Investment Capital to Its “Next-Gen” Firms
By Preeti Singh
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March 25, 2020 – Capital Constellation Offers Co-Investment Capital to Its “Next-Gen” Firms
Capital Constellation is building on its next-generation private-equity business by offering coinvestment capital to managers it backs. Founded in 2018, Constellation invests in private-equity firms with less than $3 billion in assets under management that are raising their first, second or third round of funds, or so-called “next-generation” firms.
Now, after raising an additional $500 million since last fall, Constellation has launched a new unit to co-invest with its next-generation firms, said Daniel Adamson, president of Capital Constellation in New York.Co-investments are a “critical element in the transactional soup” for next- generation managers, said Steve Moseley, deputy chief investment officer and head of alternative investments at the Alaska Permanent Fund Corp., one of Capital Constellation’s three founding investors. This is in contrast to larger, more established firms, where general partners offer coinvestments as a sweetener to their preferred institutional investors looking for fee and cost reductions…