Private Advisors, an investment advisory firm located in Richmond, has acquired Cuyahoga Capital Partners, a Cleveland-based secondaries focused private equity firm.
Cuyahoga Capital manages approximately $817 million in capital which includes $203 million across its four secondary private equity funds, $65 million in one primary private equity fund of funds and $549 million in advisory relationships (www.cuyahogacap.com).
“In Cuyahoga, Private Advisors has chosen a well-known partner that has a skilled team and successful track record in both primary and secondary private equity markets,” said Chip Moelchert, a Partner with Private Advisors. “This strategic alliance allows us to provide investors with a more complete offering that encompasses a broader spectrum of private equity structures including primary fund investments, secondary investments and direct co-investments.”
Private Advisors provides investors with expertise in North American small company private equity investing as well as diversified hedge fund strategies. The firm manages approximately $4.5 billion in assets and has over 70 employees. Private Advisors is an affiliate of New York Life Insurance Company and is based in Richmond, VA (www.privateadvisors.com).
As part of the transaction, Cuyahoga Capital’s investment professionals, including founders Bart Shirley and Chris Hanrahan, will be joining Private Advisors’ private equity team and will be focused on the deployment of its latest secondaries fund, which recently held its final close above its $125 million target. Mr. Shirley and Mr. Hanrahan formerly managed the fund of funds unit of Key Capital Corp. for eight years until spinning out in 2011 as Cuyahoga Capital. Private Advisors will be taking over as General Partner for Cuyahoga’s limited partnerships and assuming management of its advisory relationships.
“We have invested alongside each other as limited partners in several lower middle market funds in the past and share a similar investment philosophy. We just wrapped up fundraising for our fourth secondaries-focused private equity fund, which will allow us time to invest capital and integrate into Private Advisors’ business before raising our next fund a few years from now,” said Mr. Hanrahan.
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-4-12
