Mubadala Capital Buys Minority Stake in LSV Advisors

Mubadala Capital has agreed to acquire a minority stake in LSV Advisors, a New York-based manager running roughly $5 billion in assets and commitments focused on general partner-led secondaries. The deal is expected to close during the first half of 2027, subject to customary regulatory approvals. Neither party disclosed the investment's price.

Mubadala Capital, the alternative asset management subsidiary of Abu Dhabi-based Mubadala Investment Company, made the investment through its private equity arm. The stake buys a position in a specialized secondaries platform without handing Mubadala control of the manager.

What does LSV Advisors actually do?

Founded in 2005, LSV specializes in general partner-led continuation vehicles, particularly single-asset transactions involving middle-market companies. The firm has completed more than 75 transactions since executing one of the industry's earliest GP-led investments in 2011.

• Founded: 2005, headquarters New York
• Assets and commitments: approximately $5 billion
• Transactions completed: more than 75 since 2011
• Exclusive advisers: Evercore for Mubadala Capital, Houlihan Lokey for LSV

Why continuation vehicles keep growing

Continuation vehicles let a general partner transfer investments from an existing fund into a new vehicle. Existing limited partners can take liquidity or keep their exposure to the underlying business. The general partner buys more time to execute growth strategies at the portfolio company and can bring in new capital partners.

That mechanism matters most for a firm like LSV, which targets established, cash-generative businesses. Its approach pairs investment due diligence with transaction structures built around the interests of general partners, existing investors and new capital providers — an emphasis on governance, risk management and stakeholder alignment rather than a single lever.

What does Mubadala Capital bring to the table?

Mubadala Capital manages, advises and administers more than $755 billion in assets through its core alternative investment businesses and strategic partnerships. Its core alternatives operations manage and invest more than $60 billion across private equity, venture capital, credit, special opportunities and related strategies.

The firm already runs relationships spanning private wealth, insurance, credit and real estate. It operates from offices in Abu Dhabi, London, New York, Rio de Janeiro and Menlo Park, with more than 250 professionals. The LSV deal adds dedicated GP-led secondaries expertise to that platform.

How much of LSV stays with its principals?

LSV will operate under its established management team, keeping its current leadership and investment strategy. Its principals also intend to reinvest the majority of their net proceeds from the transaction into future funds, a step intended to maintain alignment among the firm's leadership, its strategies and its limited partners.

The reinvestment is the mechanism that keeps the economics aligned. Leadership money stays inside the funds, and LSV gains institutional distribution without rewriting the investment philosophy that has guided it. LSV serves institutional investors, family offices and other clients internationally. Alongside continuation vehicles, the firm and its affiliates provide restructuring and liquidity solutions involving different types of investment funds.

What do the principals say?

"We are delighted to welcome Mubadala Capital as a strategic partner and shareholder," said David G. Tisch, founder and CEO of LSV Advisors. "Mubadala Capital's global reach, institutional perspective, and long-term investment orientation make them an ideal partner as we continue building the firm for the years ahead."

Tisch added: "The investment further strengthens our platform and expands our capabilities while allowing us to remain steadfast in the approach that has defined LSV for the past 17 years."

Oscar Fahlgren, president and chief investment officer, private equity at Mubadala Capital, framed the difference this way: "LSV takes a governance-centered approach, including rigorous diligence processes, strong alignment, and risk reduction. That discipline, built by a tenured team, is what separates durable partnerships from opportunistic capital in this market."

Fahlgren said: "We are excited to partner with David and the LSV team to support their next phase of growth. Partnerships like this are a key part of our growth strategy as we seek to develop long-term relationships with leading GPs and empower them with access to our ecosystem through LP capital and connectivity across our global network of relationships including private wealth."

He also said Mubadala intends "to add new partnerships highly selectively to our platform in complementary asset classes each year."

Who advised the transaction?

Evercore serves as exclusive financial adviser to Mubadala Capital, while Houlihan Lokey acts as exclusive financial adviser to LSV.

What happens next

The investment forms part of Mubadala's strategy of building long-term relationships with specialized alternative investment managers, giving LSV access to institutional capital, private wealth distribution relationships and an international network. LSV joins the network of strategic and institutional partners while keeping its existing private wealth investor base.

Mubadala Capital plans to keep evaluating partnerships in complementary asset classes, selectively identifying managers whose strategies align with its broader platform. The deal arrives as alternative asset managers increasingly use strategic partnerships to widen distribution, strengthen capital resources and enter specialized markets. The open question is whether a $755 billion platform converts minority ownership of a $5 billion secondaries manager into actual fund flow.

For the private equity secondary market, the deal is one more sign that continuation vehicles have moved from niche structure to core liquidity option, with the value of that shift resting on whether the new institutional capital arrives with fresh investors rather than existing limited partners.