Kudu Investment Management buys stock in companies similar to itself and focuses on the healthcare industry.
Kudu said the company is currently a minority shareholder in Revelation Partners, one of the leading asset managers in the medical secondary market. Revelation remains employee-owned and managed, with co-founders and managing partners Scott Halsted and Mike Boggs remaining at the helm. Terms of the deal were not disclosed.
Based in Sausalito, California, Revelation was founded in 2013 and specializes in providing capital to investors, corporations, limited partners, and general partners across the healthcare sector. It has more than $1.5 billion in committed capital, including its fourth flagship fund, which raised $608 million and closed in October 2023. Currently invested in over 50 companies.
“We have seen record deal flow over the past few years, and Liberation is experiencing strong demand for our strategy of providing liquidity to the illiquid market of private healthcare companies,” Boggs said. Ta. “We are excited to partner with Kudu, who has the capital and experience to help us continue to optimize opportunities at scale.”
Revelation says it has grown more than 40% annually over the past six years, reflecting the expansion of the healthcare industry. More than $200 billion has been invested in private health care companies over the past three years, according to the National Venture Capital Association, but the IPO market has slumped. Revelation provides founders and other healthcare company stakeholders with liquidity as an alternative to taking their companies public.
Kudu CEO Rob Jakacki said in a statement that Revelation has built an “impressive franchise” in the exciting and evolving wealth management space.
The investment in Revelation is the first deal Kudu has announced this year. 2023 was another strong year for GP stakes investors, with Kudu investing in four asset managers. Martis Capital Management, a private equity firm focused on healthcare; Private debt management company Apella Asset Management. and (primarily) fixed income investor Sage Advisory Services.
Since its founding in 2015, New York-based Kudu has invested in 28 asset managers and wealth management companies in the United States, Canada, the United Kingdom, and Australia. The firm’s portfolio companies collectively invest approximately $129 billion for investors. It is supported by White Mountains Insurance Group and MassMutual.
