ASX-listed Navigator Global Investments has finalised a significant US$195 million (A$270 million) deal, acquiring a diversified portfolio of revenue-share interests from New York-based Stable Asset Management. Erik Serrano Berntsen, head of Stable, visited Australia to complete the transaction with Navigator, a A$1.2 billion alternative asset manager. Stable Asset Management, founded in 2006, operates as a general partner staking business. It provides funding to new or expanding asset managers in return for a share of their future revenue, effectively owning royalties rather than equity in these businesses. Stable manages A$5.2 billion in assets, backing 45 alternative money managers globally.
Stable’s model involves providing capital, management fees, and operational support to fund managers, typically securing a minority stake of around 20 per cent of future revenue. A notable asset within the acquired portfolio is Harbourview Equity, a New Jersey-based firm investing in music copyrights and other media assets. Harbourview, which notably acquired the publishing catalogue of Luis Fonsi, co-writer of the global hit “Despacito,” exemplifies an uncorrelated investment favoured by Stable. This strategy is based on the premise that media and entertainment revenues are less susceptible to broader macroeconomic downturns. The deal also includes Stable’s revenue-share interest in London-based hedge fund System 2 Capital, run by Australian Sean Oldfield.
The transaction, subject to Foreign Investment Review Board approval, is anticipated to close in the second half of the year. Once finalised, the portfolio will reside in a new vehicle, NGI Stable Growth, which Stable will continue to manage. Navigator’s shares surged approximately 8 per cent following the announcement, a rally amplified by a favourable UBS report that raised its share price target. UBS indicated the deal represents Navigator’s strategic shift towards acquiring smaller, high-growth mid-market managers and royalty-type net revenue streams. Erik Serrano Berntsen underscored Australia’s particular sophistication in understanding multi-affiliate alternative structures, calling the country an “epicentre” for such investment models.
