MLC ups PE ante with US$762m raise

In what represents a key strategic move, MLC Asset Management has upped the ante in the private equity space by creating a new private equity investment vehicle with the injection of $US762 million.

MLC AM said that its MLC Private Equity division would use the new vehicle to provide access to additional private equity investment opportunities for global institutional investors.

It said the vehicle, MLC PE Partners is comprised of approximately US$632 million of PE assets across a diversified portfolio of global middle-market PE fund positions and co-investments.

“The portfolio is diversified across several industries such as IT, healthcare, technology, and consumer-focused sectors, across North America, Europe, and the UK,” the company said.

It said that, in addition, the Fund raised US$130 million of new capital to be invested by MLC Private Equity’s experienced investment team into new global middle-market PE fund and co-investments with a focus on North America, Europe, and the UK.

The managed secondary transaction was anchored by funds managed by StepStone, which served as the lead investor. StepStone is a global private markets investment firm, with responsibility for approximately US$659 billion of total capital, including US$149 billion of assets under management.

Commenting on the move, the co-head of MLC Private Equity (US and Europe), Mark Herchel said the strategic nature of MLC PE Partners along with MLC Private Equity’s market leading private equity capability attracted a select group of prominent investors alongside StepStone Group.

Kristian Zimmermann, Co-Head MLC Private Equity (Australia), noted: “We are pleased to be the first in Australia to establish this innovative investment structure to provide access to a high-quality private equity portfolio and a strong pipeline of investment opportunities to institutional third-party investors.

“Private equity remains an attractive asset class for investors looking to achieve consistent returns,” Zimmermann said.

For his part, StepStone partner, Adam Johnston said that  as a provider of liquidity solutions in collaboration with asset owners, his firm was excited to partner with MLC on “this landmark transaction that supports their go-forward activities and also provides StepStone exposure to an attractive portfolio of MLC’s private equity assets”.