Navigator Global Investments acquires 23.5% stake in US private equity firm 1315 Capital

Alternative asset management company Navigator Global Investments (ASX: NGI) will pay approximately $111.4 million (US$70.5m) to acquire a 23.5% strategic equity stake in US healthcare private equity firm 1315 Capital and its affiliates.

1315 Capital has more than US$1 billion in managed assets, providing growth equity and buyout capital for commercial-stage pharmaceutical outsourcing, health and wellness companies, medical technology and healthcare services.

The firm targets markets where high-quality management teams can rapidly scale platform companies into large businesses that positively impact patients, physicians, and the broader healthcare system.

‘Next important step’

Navigator chief executive officer Stephen Darke said the investment was the “next important step” in the company’s strategy to partner with the world’s leading alternative investment firms.

“This is a compelling opportunity to partner with a proven and growing specialised private equity manager that brings further diversification to our existing group of partner firms and will create long-term value for Navigator shareholders,” he said.

“It broadens our exposure in private markets and does so in a sector with an exciting and scalable opportunity set.”

Enhancing the franchise

1315 Capital founder Adele C. Oliva welcomed the investment.

“Our strategic partnership with Navigator will broaden the resources and support available to our team to help further enhance our market-leading franchise,” she said.

“We expect Navigator’s extensive experience in supporting best-in-class managers globally through operational best practices, talent acquisition support and client expansion will prove invaluable over the coming years.”

Business as usual

Navigator’s minority investment will have no impact on 1315 Capital’s day-to-day management or its investment and decision-making processes.

Navigator – which plans to fund the deal from its existing resources – has appointed US-based international law firm Fried, Frank, Harris, Shriver & Jacobson as legal counsel to the transaction.

1315 Capital will use UK-based Ardea Partners as financial advisor and US multinational law firm Ropes & Gray as legal counsel.