Spin-Outs

The new generation of mid-market buyout firm is causing a stir, but has much to prove.

Granite Bridge Partners will invest across private equity, real estate, private debt and other alternative strategies.

Meteor5 Capital, which counts Mounir Guen, Loren Boston and Spanish private equity veteran Javier Loizaga among its partners, is raising a fund to back emerging managers.

Making the business case for spinning out is often easy; the potential pitfalls come from the details of doing it.

Growth equity firm FSI - which spun out from Italian sovereign wealth fund Fondo Strategico Italiano last year - has already raised €1.2bn following an interim close last month.

From Sydney to Boston, a slew of firms emerged this year and raised capital from limited partners betting that getting in early can pay out big.

The London-based bank’s private equity arm plans to form an independent entity by 2018 and has appointed Credit Suisse as a financial advisor.

Stage Capital, which spun out of National Bank of Greece's alternatives arm last year, is itself interested in backing spin-outs and portfolio transfers.

The investment firm has acquired minority direct stakes in the fund's portfolio companies and will work with the Italian manager to raise a country-focused fund.

The court case between PEP and spin-out Adamantem shows why attribution is crucial.