GP Capital Solutions Across Strategies and Asset Classes

GP Staking:
Minority Investments in Management Companies

GP staking forms the core of XAlts’ investment approach. Unlike traditional LP commitments that provide exposure to fund returns, GP staking involves acquiring non-control, minority interests in the management company itself—providing potential participation in:

Portfolio Example:
The Copia Group

In March 2024, XAlts announced its investment in The Copia Group. The investment marked the 6th investment in the fund the first to a GP raising its first intuitional fund. Founded in 2022 by Shundrawn A. Thomas and Anthony D. Hoye, Copia focuses on capital solutions to privately held lower middle market companies with an emphasis on ethnically diverse and women entrepreneurs.

The firm’s “triple bottom line” approach—income, inclusion, and impact—aligns with XAlts’ mission to support diverse managers while targeting competitive institutional returns.

Asset Class Coverage:
Diversified Private Markets Exposure

Private Equity

XAlts’ private equity strategy emphasizes lower middle market buyout and value-oriented strategies where diverse managers have demonstrated excellence and structural advantages may exist:

• Buyout – Control investments in established businesses with operational improvement opportunities
• Deep Value – Distressed, turnaround, and special situations requiring specialized capabilities
• Secondaries – Liquidity solutions in the private equity secondary market

XAlts’ October 2025 research highlights potential advantages for smaller buyout strategies: average leverage multiples have been 50-100% higher for larger buyout companies compared to smaller peers, creating significant stress as financing costs have risen. Small buyouts (sub-$1 billion companies) have enjoyed more attractive valuations and lower leverage dependency.

Private Credit

Private credit has expanded dramatically as traditional banks have reduced middle market lending participation (from ~70% a decade ago to ~11% today). XAlts targets diverse private credit managers across:

• Distressed – Acquisition of debt instruments of companies in financial difficulty
• Special Situations – Complex credit including rescue financing and DIP lending
• Corporate Lending – Direct senior secured loans to lower middle market companies

The lower middle market focus provides access to borrowers often overlooked by larger credit providers, potentially offering relationship advantages and reduced competition.

Real Estate & Infrastructure

XAlts’ real assets mandate includes diverse managers across the risk-return spectrum:

• Real Estate – Core plus, value add, and opportunistic strategies
• Infrastructure – Essential services and transportation assets including airports, ports, and toll roads

Real assets provide potential inflation protection, income generation, and diversification benefits. Portfolio relationships include, via a co investment with SCG,  Artemis Real Estate Partners, a firm co-founded by Deborah Harmon and Penny Pritzker that has raised more than $12 billion across multiple strategies. Artemis is now wholly owned by Barings and represented the first full exit in the XAlts portfolio.