Xponance
Alts
Solutions

Strategic Minority Investments
in Emerging and Diverse Alternative Managers

XAlts acquires non-control, minority equity interests in the management companies of alternative asset managers—providing exposure to management fee economics, carried interest participation, and balance sheet appreciation. This approach differs from traditional LP fund commitments by investing in the GP’s business itself, potentially offering differentiated return sources and earlier cash flow generation.

The firm strategically targets emerging, diverse and women-led managers across the GP lifecycle:

Diversity Mandate
Embedded in Investment Criteria

XAlts focuses on emerging and diverse managers:

This focus builds on Xponance’s 30+ year track record: through its Multi-Manager Platform, Xponance has placed assets in 190+ investment strategies, with over 60% offered by diverse or women-owned firms. Notably, 47% of Diverse and Woman Business Enterprise products funded by Xponance were not present in third-party databases prior to funding.

Addressing
a $15 Trillion Market Inefficiency

The GP staking market exhibits dramatic capital gaps. According to Pitchbook data from January 2011 through June 2021, only 1.2% of firms fundraising funds of $0.5-1.5B had sold a GP stake, compared to 42.4% of firms raising fund of $15B+ in assets. XAlts targets this underserved segment where diverse managers have historically faced capital constraints despite demonstrated investment excellence.

Source: Pitchbook – Closed-end fundraising data January 2011 through June 2021

Lower Middle Market
Focus in a Higher Rate Environment

XAlts’ research indicates that lower middle market firms may benefit from structural advantages as interest rates remain elevated. The October 2025 publication “A Regime Shift in Private Equity Returns” found that average leverage multiples have historically been 50-100% higher for larger buyout companies compared to smaller peers—a factor contributing to compressed exits and impaired distributions as financing costs have risen.

Small buyouts (sub-$1 billion companies) have consistently enjoyed more attractive valuations and lower leverage dependency, suggesting potential resilience. XAlts’ Investment Team concluded:

“We feel that allocators may be better served by focusing their private equity investments much further down the size spectrum than they have before.”

Institutional Partnership
with Investcorp Strategic Capital Group

In April 2021, XAlts announced a strategic collaboration with Investcorp’s Strategic Capital Group (SCG)—part of Investcorp, a leading global alternative investment manager with approximately $80+ billion in assets under management. This partnership combines Xponance’s specialized emerging and diverse manager sourcing with SCG’s institutional GP capital capabilities.

SCG’s leadership participates on the XAlts Investment Committee, providing institutional rigor while expanding access to mid-market opportunities for emerging, diverse and women-owned alternative asset managers.

Diversified
Asset Class Coverage

XAlts’ investment mandate spans the major alternative asset classes: