Flexstone Partners, a global private investments firm owned by Natixis Investment Managers, has been awarded a US$100 million ($138 million) private equity mandate from industry superannuation fund Hostplus.
The new mandate would see the superannuation fund invest in Flexstone’s new Global Opportunities IV strategy, giving direct exposure to over 40 co-investments in mid-market US and European private companies.
The deal was a continuation of the relationship between Flexstone and Hostplus which was established in 2014 via a mandate with Caspian, which later merged with Natixis’ private equity affiliates Europe PE and Eagle Asia to form Flexstone in 2019.
In 2018, Hostplus had invested in Flexstone’s US private equity emerging managers program.
Sam Sicilia, Hostplus chief investment officer, said Flexstone was an outstanding manager and their investment in private equity had provided some of the most attractive risk-adjusted opportunities this year.
“This investment will play an important role in contributing to our quest to identify and secure appropriately diverse sources of return,” Sicilia said.
Eric Deram, Flexstone managing partner, said the mandate would allow Hostplus members to benefit from the crucial buffer that private equity investors enjoyed but was not always available to other investors.
“This is especially important during COVID-19, with the goal for Hostplus members to ride out an extended period of global market dislocations,” Deram said.
Louise Watson, Natixis managing director and head of distribution for Australia and New Zealand, said: “Hostplus’ decision to award its private equity mandate to Flexstone shows the Fund’s genuine and ongoing interest in private markets to meet the investment and retirement income needs of its members.”