- 01- NYLIM takes 60% Invictus; NGI keeps minority stake.
- 02- Upfront cash to NGI: US$43m; earn-out up to US$32m.
- 03- 2031 sale of NGI's remaining Invictus stake.
Navigator Global Investments (ASX: NGI) is poised to realise significant value from its equity in Invictus Capital Partners, after New York Life Investment Management (NYLIM) announced it would acquire an initial 60% ownership stake in the US alternative credit asset manager.
The remaining 40% stake will continue to be owned by members of the Invictus management team and existing shareholders, including Navigator, until NYLIM purchases that equity in 2031.
The partnership is expected to support Invictus’ long-term growth by combining its established residential credit investment platform with NYLIM’s global reach, permanent capital, distribution capabilities, and resources.
For Navigator, the initial transaction represents a partial realisation at an attractive valuation, while retaining meaningful exposure to Invictus’ ongoing growth and performance over through to 2030 through retained interests, existing carried interest and fund investments, and potential future consideration.
Given the rate of business growth that Invictus has achieved over the last several years, Navigator believes the valuation implied by the terms of the initial stake is materially higher than the US$115 million consideration paid in 2022 when it first invested in Invictus.
Significant ROI
Set to occur in the first quarter of 2027 (subject to customary closing conditions and regulatory approvals), NYLIM’s 60% acquisition will deliver a significant return on Navigator’s invested capital, with value realised through net upfront proceeds of up to US$43m, plus potential earn-out consideration up to US$32m.
The net proceeds—which have been calculated after underlying Invictus transaction and other costs, estimated taxes, and other closing adjustments—will be used to fund new growth initiatives.
Navigator will also receive consideration in 2031 for the sale of its remaining interests in Invictus, with the amount to be determined by reference to agreed future performance outcomes, including fee-related earnings.
The consideration is intended to capture any benefits from the Invictus-NYLIM partnership and may represent a meaningful component of total proceeds.
Shareholder Value Creation
Navigator chief information officer Ross Zachary said the transaction demonstrated the potential for shareholder value creation through the company’s partnership model with established alternative investment managers.
“We are proud to have partnered with Invictus since 2022 and congratulate the team on this next chapter, which reflects significant value created since our initial investment and provides our shareholders with an attractive upfront outcome while preserving the potential for further upside as Invictus continues to grow,” he said.
“It serves as an example of how Navigator’s partnership model can create value for all stakeholders of alternative investment management firms.”
Mr Zachary said the transaction structure would maintain strong alignment between Invictus management, NYLIM, and Navigator through continued ownership and performance-linked future considerations, with Navigator positioned to benefit from a higher overall transaction consideration if Invictus continues to deliver strong growth through to 2031.
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