Bridge Investment Group to Buy Secondaries Specialist Newbury Partners for $320.1M

Real estate investment manager Bridge Investment Group Holdings Inc with about $43.3 billion in managed assets has agreed to acquire Stamford, CT-based Newbury Partners, a private equity secondaries specialist, for $320.1 million in an all-cash deal.

Bridge also entered into a $150 million note purchase agreement in which its operating company, Bridge Investment Group Holdings LLC, issued two tranches of notes in a private placement. The deal consists of $120 million of 5.99% notes with a 7-year term and $30 million of 6.10% notes with a 10-year term.

The company has also exercised an option to raise its senior secured credit facility from $125 million to $225 million.

The deal is expected to close in the first half of the year.

Newbury, which has $4.3 billion in fee-earning assets under management, focuses on acquiring limited partnership interests in established buyout, growth equity and venture capital funds.

Founded in 2006, the firm has raised over $6.2 billion across five dedicated funds and has invested in over 500 underlying interests on behalf of more than 250 limited partners globally.

Separately, Bridge reported strong fourth-quarter results for 2022 despite a difficult economic landscape. Net income was $18.2 million and $272.4 million for the quarter and year ended December 31, 2022, respectively. On a basic and diluted basis, net (loss) income attributable to Bridge’s stock was $(0.04) and $0.92, respectively.

During the year, the company achieved record closes for three of its specialized strategies with Debt Strategies IV at $2.9 billion, Multifamily V at $2.3 billion and Workforce & Affordable Housing II at $1.7 billion.