General Atlantic LLC, Robert M Bass, and senior management have made an investment in Oak Hill Advisors and purchased a minority stake held by iStar Financial, Inc.
The transaction increases the management team’s majority interest in Oak Hill Advisors and, with Bass, brings GA, a leading global growth equity firm, as a minority investor into the company. Bass co-founded Oak Hill Advisors’ first investment fund and has maintained a strategic relationship with the firm since its formation.
“We are excited to be increasing management’s ownership of the firm. In addition, we are delighted to have the commitment and support of GA and Bass as partners,” says Glenn R August, President of Oak Hill Advisors. “We greatly value the global perspective, experience and relationships that these well-respected investors bring to our business.”
“We have long known and admired Oak Hill Advisors for the strength of its management team and its long term track record of attractive investment performance for its investors. We are very pleased to have the opportunity to contribute to further building the firm and to participate in its bright future,” says William E Ford (pictured), CEO of General Atlantic.
Oak Hill Advisors and its predecessor firms have been managing funds and separate accounts invested in performing and distressed credit markets in both North America and Europe for more than 20 years. Since January 2008, Oak Hill Advisors has raised more than $4 billion of net new capital from investors world-wide, including pension plans, sovereign wealth funds, insurance companies, foundations and family offices.
Since its founding in 1980, General Atlantic has been an active investor in financial services, investing nearly $3 billion in more than two dozen financial services companies globally. Current financial services sector investments include CITCO, First Republic Bank, Getco LLC, Markit, BM&F Bovespa and Indusland Bank; prior investments in the sector include NYSE Euronext (via Archipelago), CME Group (via NYMEX), RiskMetrics and E*Trade. In addition to financial services, GA focuses on providing growth equity globally to leading businesses in the following sectors: healthcare; energy and resources; business services; Internet and technology; and emerging markets consumer.
Citi and Morgan Stanley acted as financial advisors to Oak Hill Advisors in connection with the transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to Oak Hill Advisors.