Navigator Global buys shares in 17 managers, enters partnership

Navigator Global Investments is acquiring a portfolio of interests in 17 alternative investment managers as part of a broader strategic partnership with Stable Asset Management.

Navigator will pay $270 million for a portfolio of net revenue share interest in 17 managers from funds managed by and clients of Stable Asset Management. They include managers of varying size involved in long-short equities, royalties, private credit and relative value.

Navigator said the move diversifies its investment strategy, broadens its investor base, and provides a higher growth profile.

Together the interests will form the NGI Stable Growth Portfolio which, as at March, had $20.8 billion in firm-level assets under management (AUM) and $2.5 billion of ownership-adjusted AUM.

At the same time, Navigator has entered a long-term strategic partnership with Stable Asset Management to oversee the NGI Stable Growth Portfolio on behalf of Navigator. In return, Stable will be paid $2.16 million annually for an initial six years.

Navigator said partnering with Stable expands its ecosystem across the asset manager lifecycle and advances its vision to be a leading partner to alternative managers globally. Following the deal, Navigator will have some 29 partner firms.

"With deep experience in sourcing, structuring and scaling alternative asset managers, Stable is expected to provide NGI with access to an attractive pipeline of additional opportunities," Navigator said.

As part of the deal, Stable chief executive Erik Serrano Berntsen will join the Navigator board.

"The acquisition of the growing portfolio of 17 interests in alternative asset managers, and the long-term partnership with Stable extends NGI's business model across the asset manager lifecycle and materially increases NGI's addressable market," Navigator chief executive Stephen Darke said.

"This strategically and financially compelling transaction enhances the diversification and long-term growth potential of the business without changing Navigator's primary strategy of partnering with established and scaled firms, and improves Navigator's earnings growth, profitability and cash flow generation."

Meantime, Serrano Berntsen said the group is delighted to be partnering with Navigator.

"After an extended period of engagement with the team, it is clear the Stable and Navigator businesses are highly complementary and strategically adjacent and share a similar partnership-oriented culture and approach to supporting the growth of leading alternative asset managers," he said.

"This strategic partnership creates significant growth opportunities that will benefit both firms. Our focus is on continuing to build the target portfolio while executing additional partnership opportunities together.

"I also look forward to joining the board of NGI as an observer and working closely with Navigator's other strategic partners to drive value creation."

The acquisition is expected to complete in early FY27.