State Street Investment Management has taken a strategic minority stake in private market secondaries manager Coller Capital with the pair set to collaborate on broaden each firm’s reach and drive innovation.
State Street IM currently manages more than US$5 trillion in assets for clients across 60 countries and Coller Capital has some US$46 billion in funds under management (FUM) in secondaries across institutional closed-end funds and its professional and qualified investor funds.
Through this partnership, State Street IM said its clients will gain access to Coller’s private equity and private credit secondaries capabilities.
Meanwhile, the investment and relationship will support Coller’s long-term growth strategy and expand access to secondaries to a broader range of investors and markets.
State Street added: “This relationship advances State Street Investment Management’s strategy to expand into private markets by partnering with leading alternative asset managers.”
Looking at how this will impact Coller’s operations, the firm said this strategic investment will not change the investment process or day-to-day management of Coller, while the proceeds of the transaction will be reinvested into the Coller business.
According to State Street, the deal comes as secondaries are increasingly being viewed as a strategic component of asset allocation due to its ability to offer unique risk-return and liquidity characteristics.
Namely, it noted that 2024 saw more than US$160 billion in secondaries transaction, with predictions indicating that this may rise to nearly US$500 billion by 2030.
Speaking on the announcement, Yie-Hsin Hung, chief executive of State Street Investment Management said secondaries and private markets represent a growing opportunity as clients and institutional investors seek avenues to deliver “diversification and differentiated investment options”.
“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,” Hung said.
Coller Capital chief investment officer and managing partner, Jeremy Coller, added that he is pleased to partner with State Street as they continue to execute the firm’s growth strategy.
He 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.”
Following the recent launch of its Private Equity Secondaries Fund, Coller Capital made the fund available to investors on several wealth management platforms. The investment firm launched its Coller Private Equity Secondaries Fund last October.
The fund is specifically designed for the wholesale investor market, Coller Capital stated, offering financial advisers and their clients access to a globally diversified portfolio of private equity secondaries, an asset class that was typically the domain of large institutional investors.
