Overview of the Acquisition#
Navigator Global Investments (ASX:NGI) has announced an agreement to acquire a portfolio of minority interests in 17 alternative asset managers from Stable Asset Management for $195 million. This acquisition is expected to close in the early second half of 2026 and will be financed through a mix of cash and NGI shares.
Portfolio Details#
The portfolio being acquired is valued at 7.6 times its expected distributions for the calendar year 2025. It includes revenue-sharing interests in alternative asset managers that collectively manage approximately $1.8 billion in assets. These managers typically charge a performance fee of 17%, which is a fee based on the profits generated by the investments they manage.
Strategic Partnership#
Under the terms of the agreement, Stable Asset Management will continue to manage the portfolio for NGI through a new entity called NGI Stable Growth. This arrangement fosters a long-term strategic partnership between the two firms, allowing Stable to leverage its expertise while NGI expands its asset management capabilities.
Background on the Companies#
Stable Asset Management, established in 2006, manages $5.2 billion in assets and collaborates with 45 alternative asset managers worldwide. It focuses on providing capital to emerging managers in sectors like private equity and private credit. Meanwhile, NGI oversees about $32 billion in assets on an ownership-adjusted basis and has reported significant revenue growth, generating $4.2 billion over the last year.
Additional Developments#
In related news, Navigator Global recently made a strategic investment of $100 million in Georgian, an AI-focused growth equity firm. This investment gives NGI a 4.5% indirect equity stake and is aimed at supporting Georgian's future growth initiatives. Despite a strong financial performance in the first half of FY2025, NGI's stock faced a decline, reflecting competitive pressures in the alternative asset management industry.