Charlesbank Takes Minority Stake in Overbay to Back Secondaries Growth
Overbay Capital Partners has agreed to sell a minority stake to Charlesbank Capital Partners, securing growth capital to expand its investment team and technology infrastructure as the private equity secondaries market continues to attract new institutional capital.
Under the terms of the agreement, Boston-based Charlesbank will provide strategic funding while Overbay’s leadership team will retain full control over investment decisions and day-to-day operations. Financial terms of the transaction were not disclosed. The deal is expected to close around mid-2026.
Rob McGrath, CEO of Overbay, said the investment reflects the growing momentum in the secondaries market as investors increasingly seek liquidity solutions and diversified access to private equity portfolios.
“As more investors enter the asset class, we see an incredible opportunity for secondary funds offering attractive risk-adjusted returns through more investor-friendly structures,” McGrath said.
Founded in 2016 and based in Toronto, Overbay manages approximately $3 billion in assets and focuses on acquiring diversified portfolios of private equity, growth equity and venture capital fund interests. The firm has developed particular expertise in technology, sports investments and funds-of-funds, serving a global base of endowments, foundations, family offices and institutional investors.
“As the only secondaries firm founded by intermediaries, Overbay has a competitive advantage in sourcing and structuring transactions that benefit asset sellers while simultaneously focusing on generating attractive returns for its investors,” said Jared Pomerance, a principal at Charlesbank.
Charlesbank manages about $20 billion in assets and is currently raising capital for Charlesbank Credit Fund IV and Charlesbank Capital Partners XI, its latest flagship middle-market private equity vehicle.
Goodmans advised Overbay on the transaction, while Kirkland & Ellis and Stikeman Elliott represented Charlesbank.