Flexstone Partners and Hostplus to Launch US Private Equity Emerging Managers Program

SYDNEY & BOSTON--(BUSINESS WIRE)--Global private investments firm Flexstone Partners, an affiliate of Natixis Investment Managers, and Hostplus, a top-performing Australian superannuation fund, will start a US private equity emerging managers program dedicated to Hostplus and designed to provide risk-adjusted investment solutions to qualifying Hostplus members.

The emerging managers program will see Flexstone Partners invest over the next three years in the first, second or third funds of US mid-market private equity managers on behalf of the industry superannuation fund.

“We believe successful US emerging managers program members tend to deliver higher fund returns, on average, compared to the returns of their former funds. In addition, with their successes, when they become more established, emerging managers may become increasingly difficult to access, as Limited Partners compete to get capacity.”

“The breadth and experience of the Flexstone team allows us to detect, access, and perform due diligence on emerging managers that may become a core of the future allocation of our client,” said Nitin Gupta, Managing Partner at Flexstone Partners. “We are excited to start this long-term initiative with a strong partner like Hostplus.”

“For Hostplus, developing and maintaining long-term partnerships with investment managers is critical to securing privileged access to successor funds and future deal flow,” said Sam Sicilia, Chief Investment Officer of Hostplus. “More than anywhere else, managing relationships with market leaders is particularly important for access to private markets. We are very pleased to team up with Flexstone Partners, who have proved to be a strong partner in the US market.”

“This partnership between Hostplus and Flexstone is a demonstration of super funds’ search for new and diverse income streams for their members, and how our global multi-affiliate model can provide institutions with tailored solutions in new markets, while supporting innovation,” said Louise Watson, Managing Director for Australia at Natixis Investment Managers. “I look forward to continuing the conversations with Hostplus on a wide range of unique investment strategies, with Natixis’ highly active managers.”

About Hostplus

Hostplus is the industry superannuation fund for those who live and love Australian hospitality, tourism, recreation and sport. The Australian Hotels Association and United Voice jointly established the fund over 30 years ago. It is one of the largest super funds in Australia with 1.2 million members, 177,000 active employers and US $30 billion in funds under management. Further information: www.hostplus.com.au

About Flexstone Partners (“Flexstone”)¹

Flexstone, an affiliate of Natixis Investment Managers, is a leading investment solutions provider in private assets with a global reach and local footprints in New York, Paris, Geneva and Singapore.² It specializes in the selection of the best private equity, private debt, real estate, and infrastructure fund managers for investment by Flexstone’s clients. Flexstone manages primary and secondary investments as well as co-investments. Flexstone’s expertise is distinguished by a high flexibility in building customized portfolios that are tailored to the unique needs and constraints of each investor, whether institutional or private individual.³ Flexstone offers a large range of services, from advising on private assets portfolio construction to the management of fully discretionary separate accounts and funds of funds. Flexstone, with more than 40 professionals, manages $6.7 billion.⁴ It is a majority-owned subsidiary of Natixis Investment Managers, one of the largest investment managers worldwide. Further information: www.flexstonepartners.com

About Natixis Investment Managers

Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of more than 20 specialized investment managers globally, we apply Active Thinking^® to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis ranks among the world’s largest asset management firms⁵ ($917.1 billion/€802.1 billion AUM⁶).

In Australia: Provided by Natixis Investment Managers Australia Pty Limited (ABN 60 088 786 289) (AFSL No. 246830) and is intended for the general information of financial advisers and wholesale clients only.

In France: Provided by Natixis Investment Managers International – a portfolio management company authorized by the Autorité des Marchés Financiers (French Financial Markets Authority - AMF) under no. GP 90-009, and a public limited company (société anonyme) registered in the Paris Trade and Companies Register under no. 329 450 738. Registered office: 43 avenue Pierre Mendès France, 75013 Paris.

In London: Provided by Natixis Investment Managers UK Limited which is authorised and regulated by the UK Financial Conduct Authority (register no. 190258) - registered office: Natixis Investment Managers UK Limited, One Carter Lane, London, EC4V 5ER. When permitted, the distribution of this material is intended to be made to persons as described as follows: in the United Kingdom: this material is intended to be communicated to and/or directed at investment professionals and professional investors only.

¹ Flexstone is the name that collectively identifies Flexstone and its underlying companies.
² Starting 4/1/2019.
³ Under certain conditions related to marketing and prospection regulatory requirements specific to each entity.
⁴ Source: Flexstone Partners. Combined assets under management of Caspian Private Equity, Euro Private Equity and Eagle Asia Partners as of 9/30/2018, including commitments for closed-end private placement funds, and sum of Net Asset Value and unfunded commitments otherwise.
⁵ Cerulli Quantitative Update: Global Markets 2018 ranked Natixis Investment Managers as the 16th largest asset manager in the world based on assets under management as of December 31, 2017.
⁶ Net asset value as at December 31, 2018. Assets under management (“AUM”), as reported, may include notional assets, assets serviced, gross assets and other types of non-regulatory AUM. AUM does not include Vega Investment Managers, which was transferred to Natixis Wealth Management in December 2018.