Houlihan Lokey Advises Graham Partners on GP Stake Investment From PACT Capital Partners
Houlihan Lokey’s GP Advisory team is pleased to announce that Graham Partners (Graham) has closed on a minority, all-primary, balance sheet investment from PACT Capital Partners (PACT).
This successful investment is another example of Houlihan Lokey’s market-leading GP Advisory platform. Over the past ~three months, the GP Advisory team has served as the sole advisor on five GP Stake investment transactions and one GP control M&A transaction.
Graham, a private investment firm targeting advanced manufacturing and technology-enabled services businesses, has partnered with PACT to complete a minority GP Stakes investment. PACT’s all-primary balance sheet investment will be deployed by Graham into the firm’s funds. Graham’s day-to-day operations will remain unchanged.
The partnership represents Graham’s next step in positioning itself for long-term growth and organizational advancement. The investment provided by PACT will infuse capital for growth onto the firm’s balance sheet, enabling its investment team members to significantly increase their investments in the Graham Partners funds and their stake in the firm, and supporting the development of initiatives that capitalize on the firm’s sector-focused approach and hands-on operating model. Net of transaction expenses, 100% of the investment proceeds will be reinvested into Graham’s funds.
In conjunction with this long-term capital investment, Graham has implemented an organizational plan that will initially extend long-term economic participation, ownership, and value creation opportunities to roughly 30 team members across the firm, with future opportunities for participation by junior team members. There will be no liquidity provided to Graham’s owners in connection with this all-primary investment.
Graham is a private investment firm principally focused on investing in technology-driven companies in advanced manufacturing and related services that are spurring innovation, resulting in product substitutions, raw materials conversions, and disruptions to traditional end markets. Graham can offer control or minority capital solutions and typically targets companies with EBITDA up to $50 million. Since Graham began managing third-party capital roughly 25 years ago, the firm has closed over 160 acquisitions, joint ventures, financings, and divestitures. The committed capital raised through the Graham Partners funds, together with Graham-led co-investments, totaled approximately $6.8 billion as of March 31, 2025, which differs from Graham’s Regulatory Assets Under Management of approximately $4.1 billion as of March 31, 2025.
PACT is an independent investment firm focused on providing capital and strategic support to middle-market alternative asset management firms. PACT seeks to partner with high-performing established and emerging private capital firms and help them to achieve their strategic objectives. Headquartered in New York, PACT utilizes its proprietary imPACT platform to assist partner firms in accelerating capital formation, designing and launching new products, improving operations, attracting and retaining talent, leveraging cutting-edge technology, and improving outcomes for underlying portfolio companies.
Houlihan Lokey served as the exclusive financial advisor to Graham and assisted Graham in structuring and negotiating this innovative GP Stakes transaction, which was negotiated by Graham and PACT outside of a traditional competitive process.
This transaction represents an additional successful engagement for Houlihan Lokey’s market-leading GP Advisory platform, having served as the sole advisor across six transactions since mid-March.
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