David Rubenstein, the co-founder of The Carlyle Group, has backed the launch of a new independent investment firm, Hobe Mountain Capital, which has spun out from his family office, Declaration Capital.
Key Details of the Spinout:
- New Firm’s Name: Hobe Mountain Capital Management.
- Focus: The firm specializes in private market secondaries, which involves buying and selling existing stakes in private investment vehicles (like private equity, venture capital, and real estate funds).
- Leadership: Hobe Mountain is co-founded and led by Alexa Rachlin (Mr. Rubenstein’s daughter) and Todd Buys, both of whom were previously managing directors at Declaration Capital.
- Strategy: The new firm is specifically targeting the lower-middle market secondary segment. They focus on acquiring smaller fund stakes and interests that are typically overlooked by larger institutional secondary buyers. Sources indicate their deal sizes are often below $5 million to $25 million in equity checks.
- Market Context: This launch capitalizes on the rapid growth and increasing demand in the secondary market. A prolonged slowdown in traditional exits (such as IPOs and mergers and acquisitions) has created a need for liquidity among limited partners (LPs), driving up secondary deal volume. By focusing on smaller, fragmented deals, Hobe Mountain aims to exploit inefficiencies in a segment that bigger players often ignore.
The new firm plans to continue working closely with Declaration Capital, helping to deploy family office capital into this fast-growing part of the private markets ecosystem.
