Montana Capital Partners is being acquired by PGIM.
PGIM Strengthens Position in Private Equity Secondary Market with Acquisition of Montana Capital Partners
PGIM, the investment manager of Prudential, has announced its acquisition of Montana Capital Partners (MCP), a European-based service provider in the private equity secondary market. The deal, expected to close in the third quarter of 2021, is subject to customary regulatory approvals.
MCP, founded in 2011 by Christian Diller and Marco Wulff, currently manages approximately €2.7 billion in assets. The investment firm focuses its strategy on small- and mid-cap secondary transactions. With this acquisition, PGIM aims to strengthen its position in the private equity secondary market, leveraging MCP's team expertise and data-driven underwriting approach.
The acquisition is expected to broaden PGIM's asset management in alternatives substantially. Currently, PGIM's strategies manage approximately $215 billion in assets. Through the acquisition, PGIM would expand its existing alternatives offering.
MCP will operate under PGIM post-acquisition. The integration will be led by Eric Adler, President and CEO of PGIM Real Estate. The co-founders of MCP will continue to manage the firm, retaining operational independence within PGIM's multi-manager structure.
This integration brings together the advantages of PGIM's global scale with MCP's specialized private equity secondaries expertise. The aim is to deliver enhanced investment outperformance and better serve institutional clients. MCP benefits from PGIM’s extensive platform across public and private markets, supporting access to a wider client base and expanded operational resources.
The rationale behind PGIM's acquisition of MCP is to significantly strengthen PGIM's alternatives investment offering. The deal illustrates a collaborative platform approach within PGIM, where MCP applies its data-driven investment criteria aligned with PGIM’s portfolio objectives, creating a model for future partnerships and portfolio management solutions.
David Hunt, President and CEO of PGIM, stated that the acquisition provides a foundation to enhance PGIM's capabilities in alternatives. He further added that this acquisition is a strategic and cultural fit, positioning PGIM to deliver differentiated solutions to its clients in the private equity secondary market.
In addition to sovereign wealth and pension funds, insurance companies, banks, family offices, and high net worth individuals are among MCP's investors. The acquisition of MCP by PGIM is expected to expand PGIM's global distribution, sourcing, operational, compliance, and regulatory support.
[1] PGIM press release, 2021 [2] Pensions & Investments, 2021 [4] Financial News, 2021
- The acquisition of Montana Capital Partners by PGIM will enable the organization to fortify its position in the finance sector, specifically in the private equity secondary market, as it leverages MCP's team expertise and data-driven underwriting approach.
- PGIM's expansion into the alternatives investment space, as demonstrated by the acquisition of Montana Capital Partners, not only broadens its asset management capabilities but also aims to cater to a wider range of clients in the insurance and finance industries.
