Capital Constellation has bought a stake in former RBS private equity arm Pollen Street Capital, a £2.8bn-managing investment firm.
Constellation said it had acquired a minority ownership interest in Pollen Street and would provide “significant investment capital” to support the continued growth of Pollen Street’s private equity and credit businesses.
Pollen Street targets lower mid-market firms which it believes have the capacity to become leaders in their field across Europe.
The firm has deployed more than £1.2bn capital into this strategy over the last 14 years. It closed its most recent fundraise on over £400m two years ago.
Pollen Street managing partner Lindsey McMurray said, “We believe that we have built a differentiated franchise and team with a deep understanding of our focus industries. The partnership with Constellation endorses the value of strong industry specialization in this complex environment.”
Constellation is managed by $25bn-managing private equity house Wafra.
Russell Valdez, CIO of Wafra and a founding board member at Constellation, said, “We believe Pollen Street’s deep expertise within financial services and experience investing across economic cycles uniquely positions them in today’s environment.
“We’re excited to partner with Pollen Street as they have demonstrated clear industry leadership and a differentiated investment strategy in both private equity and credit investments.”
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