Hamilton Locke advised Scarcity Partners (Scarcity) on the acquisition of a minority stake in January Capital.
This transaction represents Scarcity’s third investment as part of its ‘GP-staking’ strategy – preceded by Scarcity’s minority investment in the Evidentia Group and in Dinimus Credit, both of which completed earlier this year.
The GP staking model adopted by Scarcity is an evergreen investment strategy which involves taking a minority interest in asset management firms. This allows founders to maintain operational and strategic control, while utilising the vast expertise and experience available at Scarcity to accelerate growth and scale their businesses whilst remaining independent.
January Capital is a leading Singapore based private markets multi-strategy investment firm with over AU$500 million in assets under management and a portfolio of more than 60 companies collectively valued at over AU$12.5 billion, which focuses on Asia Pacific technology companies.
Hamilton Locke advised Scarcity on all aspects of the transaction, from Australian due diligence to managing the acquisition process. The Hamilton Locke team was supported for Singaporean legal due diligence matters by the CMS Singapore team led by Toby Grainger and Paul Moloney.
Gordon McCann said: “It is a pleasure to support Scarcity Partners on its third investment this year (and first investment outside of Australia) in connection with its GP-staking model. We look forward to working with Scarcity Partners as it continues to grow its portfolio throughout the APAC region.”
The corporate Hamilton Locke team was led by Gordon McCann (Partner) and included Kathryn May (Special Counsel) and Lorenzo Ricchi (Lawyer.) The corporate team was supported by our funds and financial services team including Erik Setio (Partner) and Annabelle Parmegiani (Lawyer).
Scarcity Partners was also supported by the Eaglehawk Capital team, including Josh Coull, Ged Dawson and Tom Cunningham.
Hamilton Locke’s expertise in GP Staking
Although not yet widespread in the Australian private equity landscape, GP staking presents an excellent opportunity for investors seeking stable growth opportunities in volatile economic times.
Having advised on numerous GP staking transactions in Asia Pacific, at Hamilton Locke we are well aware of both the opportunities and challenges presented by this type of investment, and we work closely with our clients to navigate the hurdles encountered during the GP staking process.
For more information, please contact Hamilton Locke, Partners Gordon McCann or Erik Seito.
