Houlihan Lokey Advises Martis Capital on GP Stake Sale to Kudu Investment Management

Houlihan Lokey is pleased to announce that Martis Capital Management, LLC (Martis) has sold a minority equity GP stake to Kudu Investment Management (Kudu). Houlihan Lokey served as the exclusive sellside financial advisor to Martis and assisted in structuring and negotiating the GP stake.

This transaction further solidifies Houlihan Lokey’s dominance in GP stake advisory transactions, with six executed transactions to date in 2023.

Martis, a leading healthcare-focused private equity investor with offices in Washington, D.C., and San Francisco, has agreed to sell a passive minority equity GP stake to Kudu.

Founded in 2011, Martis is a highly focused private equity manager investing in targeted segments within the services and outsourcing, information technology, and consumer and wellness subsectors of the North American healthcare industry. Martis has built a reputation for providing high-quality, highly customized solutions to middle-market healthcare firms focused on helping founder-led companies unlock and accelerate the next phase of their growth.

Since its inception, Martis has raised nearly $2.2 billion globally from a diverse group of prominent institutional investors and family offices, strategic partners, and healthcare entrepreneurs. Martis recently closed its fourth fund, Martis Partners IV, LP, on June 6, 2023, with approximately $779 million in capital commitments, exceeding its target of $700 million.

As a strategic minority investor focused on long-term, permanent capital solutions, Kudu plans to support the firm through its global institutional network while providing strategic advice to support the continued growth of Martis. There will be no changes in the strategy, management, investment process, or day-to-day operations of Martis or any Martis-managed products resulting from Kudu’s investment.

Founded in 2015 and headquartered in New York, Kudu provides long-term capital solutions—including generational ownership transfers, management buyouts, acquisition and growth financing, as well as liquidity for legacy partners—to independent asset and wealth managers globally. Kudu is backed by institutional capital partners, including White Mountains Insurance Group, Ltd., MassMutual, and Martello Re. Since its inception, Kudu has invested in 24 asset and wealth managers headquartered in the U.S., Canada, the U.K., and Australia. Kudu-affiliated asset and wealth managers now collectively invest approximately $74 billion, as of March 31, 2023, on behalf of individual and institutional investors worldwide in traditional and alternative strategies and market segments.

RELATED: Financial Sponsors Coverage, Corporate Finance, Mergers & Acquisitions, Private Funds Advisory