The Capital Partnership has agreed to acquire Northgate Capital, the California-based venture capital and private equity investment firm with $4.8 billion in assets under management.
The London and Dubai-based asset management firm will secure 100% of the ownership in Northgate from India’s Religare Enterprises and Northgate management. Religare, a diversified financial services group, acquired a majority interest in Northgate in 2010. Terms of the deal were not disclosed.
“The Capital Partnership has a successful 18-year track-record in venture capital and private equity investments, which is highlighted by our existing 12-year relationship with Northgate,” Ali Ojjeh, Managing Partner and co-founder, The Capital Partnership, said in a press release. “Silicon Valley plays an increasingly important role in global value creation across all sectors which is highlighted by technology companies’ share of the S&P 500, which has more than doubled in the last 30 years and represents approximately 20% of the index today.”
Northgate’s portfolio companies include the likes of Yelp, Palo Alto Networks and Foursquare. Northgate will retain its investment and operational autonomy following the acquisition. Dr. Hossein Khajeh-Hosseiny will continue in his role as Managing Partner and CEO of the firm, while Ojjeh is expected to take the additional role of Chairman of Northgate.
“We are excited to expand our collaboration with The Capital Partnership, which manages funds with longstanding investments in our (Northgate) funds. Since purchasing its ownership stake in 2010, Religare has made tangible contributions to our institutionalization and the growth of our network beyond the US,” Khajeh-Hosseiny said. “We are delighted with Religare’s choice of The Capital Partnership as our buyer. With a strong understanding of Northgate, global technology and capital markets as well as investors in start-ups and funds, The Capital Partnership is well-suited to help us build on our growth and network to fully realize our potential as a strong, long-term, value-creating platform for our ecosystem of partners.”