Chorus Capital has sold a minority stake to Armen
Chorus Capital
Founded in 2011, Chorus Capital is a leading London-based alternative credit investor specialized in bank risk-sharing transactions (RSTs). RSTs are a versatile capital management tool that allow banks to improve regulatory capital ratios and return on equity by recycling capital tied up in loan portfolios. Chorus Capital is a pure player in bank RSTs (also referred to as SRTs), with a strong focus on performing large corporate loan portfolios from leading European and North American banks. The firm has secured more than $4.6 billion in cumulative capital commitments from global institutional investors since its inception. In Q2 2024, Chorus Capital successfully completed fundraising for its fifth vintage fund at $2.5 billion, the largest dedicated RST fund in the market, with new investors representing approximately 60% of capital commitments. The firm won the “SRT Investor of The Year” award consecutively in 2023 and 2024.
The Deal
The transaction entails the sale of a 16% equity interest in Chorus Capital to Armen. The partnership will further accelerate Chorus Capital’s growth and expand its presence in the rapidly growing RST market. A significant portion of the investment proceeds will be allocated by Chorus Capital’s senior management to co-invest in the firm’s upcoming fund. The firm’s strategy, management and investment process will remain unchanged following the transaction.
Our Perspective
Antoine Dupont-Madinier, Managing Director in Lincoln International’s Financial Institutions Group, commented, “This transaction underscores Lincoln International’s continued success in the fast-growing European mid-market general partner (GP) minority stakes sector. The sector is poised for significant growth, driven by strong tailwinds that have fueled record fundraising among existing GP stakes investors and spurred the entry of new participants. Demand for GP stake transactions has risen as European mid-market GPs increasingly recognize the benefits of minority stake partnerships.”
Armen
Armen is a mission-driven company which aims to contribute to a positive change in the private equity ecosystem and to responsibly steer management companies and their holdings, according to environmental, social and governance criteria, towards a sustainable future. Armen’s first fund invests as a minority shareholder in European alternative investment companies through transactions called GP Stakes.
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