Mubadala Capital buys minority stake in $5B secondaries firm LSV
What's the deal? Mubadala Capital has agreed to acquire a minority stake in LSV Advisors, a New York-based manager focused on GP-led, single-asset continuation vehicles in the middle market. Terms were not disclosed. The deal is expected to close in the first half of 2027, pending regulatory approvals.
What each side brings: LSV, founded in 2005, manages about $5 billion in assets and commitments and has completed more than 75 GP-led continuation vehicle transactions since 2011. Mubadala Capital, the alternative asset arm of Mubadala Investment Company, oversees more than $755 billion for clients and limited partners.
What's the endgame? The stake adds a dedicated GP-led secondaries manager to Mubadala Capital's platform, alongside existing partnerships across private wealth, insurance, credit, and real estate. For LSV, it provides access to long-term capital and a global institutional network while preserving its leadership and strategy.
Why now? GP-led secondaries are booming. Lazard estimates the market hit a record $124 billion in the first half of 2026, with continuation funds accounting for 84% of GP-led activity and single-asset vehicles gaining share.
Those vehicles let private-equity sponsors return cash to existing investors while holding onto prized assets, raising demand for specialists like LSV.
What they're saying: "Partnerships like this are a key part of our growth strategy as we seek to develop long-term relationships with leading GPs," said Oscar Fahlgren, president and chief investment officer, private equity, at Mubadala Capital.
LSV founder and chief executive officer David G. Tisch said the deal lets the firm "remain steadfast in the approach that has defined LSV for the past 17 years." Its principals plan to reinvest most of the proceeds into future funds.
The signal: Sovereign-backed capital is moving deeper into the secondaries boom, not just as a buyer of continuation vehicles but as an owner of the managers that build them — a sign the niche strategy is becoming core infrastructure for private markets.
Read more: markets.financialcontent.com
Image credit: sergei.gussev
