State Street Stakes Secondaries Firm Coller Capital
State Street Investment Management has made a strategic minority investment in Coller Capital, an alternative asset manager specializing in secondaries investments. The two firms have also agreed to collaborate across various client segments to broaden their individual reach.
State Street Investment Management manages approximately $5.45 trillion in assets with a focus on ETFs and mutual funds. Earlier this year, the firm added custom models featuring private market options for its advisor clients through Envestnet’s UMA platform.
Coller Capital manages over $46 billion in secondaries assets through institutional closed-end funds and semiliquid open-end funds geared toward individual investors. Last year, for example, the firm launched the Coller Secondaries Private Equity Opportunities Fund (C-SPEF), a tender offer fund available to accredited investors who can meet a $50,000 minimum investment threshold.
“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,” said Yie-Hsin Hung, CEO of State Street Investment Management, in a statement.
The proceeds from the transaction will be reinvested in the Coller Capital business.
As interest in private market investments has grown, traditional asset managers have increasingly been partnering with alternatives specialists to broaden their product lineup. For example, last month, PGIM, which operates a $1 billion credit platform including public fixed-income investments, announced a strategic partnership with the Partners Group, which focuses on private equity and infrastructure, to build multi-asset portfolios. Last year, ETF specialists Burney Company and Rayliant formed a similar partnership with alternative asset manager Clough Capital Partners. In the most high-profile example, Capital Group Companies, the parent company of American Funds, formed a joint venture with private equity giant KKR, to launch at least two public-private fixed-income investment options.