Veritable LP and Moelis Asset Management LP are forming Archean Capital Partners, a new private market investment firm. The joint venture will provide portfolio managers with capital to launch their own funds.
PHILADELPHIA & NEW YORK–(BUSINESS WIRE)–Veritable, LP. (“Veritable”) and Moelis Asset Management LP (“Moelis AM”) today announced they have entered into a joint venture agreement establishing Archean Capital Partners, a private market investment platform that will provide new portfolio managers with the initial capital, advice and infrastructure necessary to launch their own funds.
Veritable is a leading wealth management firm with over $13 billion of assets under management. Moelis AM is the parent company for alternative asset management firms with an aggregate of over $3 billion in assets under management.
Through Archean Capital Partners (“Archean”), Veritable and Moelis AM will seek capital commitments for a series of single manager, special purpose vehicles (“SPV” or collectively, “SPVs”) that will invest in selected newly launched private funds. Archean will partner with managers across a broad range of strategies including buyout, turnaround/restructuring, growth, credit opportunities, infrastructure and real estate. As part of Archean’s seed investment of capital in these newly launched funds, Archean will seek to provide its investors returns generated on both invested capital and revenue sharing from the new investment manager’s business.
Veritable and Moelis AM have already established the initial Archean SPV, a single manager SPV with $100 million of capital committed by Veritable’s clients and individuals at Veritable, Moelis AM and Moelis & Company. The Archean SPV is in the process of investing with its first candidate in the private funds industry. Moelis & Company’s Private Funds Advisory Group has been retained by this manager to advise on further capital raising.
Michael Stolper, Founder and CEO of Veritable, said, “Veritable made its first alternative strategy investment in the late 1980s. Since then we have invested several billion dollars of client capital around the world with a wide variety of unaffiliated private fund and hedge fund managers. In many instances, Veritable has provided fund managers with a significant portion of their initial investment capital having often cultivated relationships with them for years. We have developed a strong reputation among fund managers for providing long-term investment capital and the opportunity for managers to build their own track records. We are very pleased to be partnering with Moelis AM on this innovative partnership that, through Archean, will provide newly formed private markets managers with the critical mass and operating support to create institutional quality organizations.”
Christopher Ryan, Managing Director of Moelis AM, said, “The Archean platform is intended to allow individual managers the certainty of a large and stable source of initial capital for a rapid first close and the fundraising capabilities to secure additional capital commitments for their first funds. In partnership with Veritable, we believe there will be tremendous opportunities to grow this unique investment platform for the benefit of new managers and investors alike.”
Veritable, a leading wealth management firm, manages over $13 billion across nearly 200 ultra-high-net-worth families. A pioneer in open-architecture wealth advisory services, Veritable provides comprehensive, objective and tax-sensitive investment consultation through an approach customized for each client’s specific needs. Founded in 1986 by Chief Executive Officer Michael Stolper, the firm is headquartered in Newtown Square, PA with offices in San Francisco, CA, and has 84 employees, including 36 investment advisory and 12 research professionals. For further information, please visit: www.veritablelp.com.
About Moelis Asset Management
Moelis Asset Management LP (“Moelis AM”) is the parent company for alternative asset management firms with leading capabilities in private equity, direct lending, credit funds and structured products. The Firm has been built on the premise of backing high caliber investment firms with products it believes can provide attractive risk adjusted returns for investors. The businesses of Moelis AM include Chamonix Partners Capital Management LLC, a structured products investment manager, Freeport Financial Partners LLC, a direct lending platform, Gracie Asset Management, a multistrategy credit manager, Moelis Capital Partners, LLC, a private equity firm focused on middle market companies, and Steele Creek Investment Management, a manager of collateralized loan obligations and other broadly syndicated loan products. Moelis AM was also a founding investor of College Avenue Loans LLC, a private student loan company. Moelis AM advisers currently have aggregate assets under management of over $3 billion. Moelis AM is an affiliate of Moelis & Company (NYSE:MC) (“Moelis”), a leading global independent investment bank. For further information, please visit: www.moelisassetmanagement.com.