State Street's Bold Move Into Secondaries with Coller Capital

State Street’s Innovative Partnership

In a strategic move poised to reshape the landscape of private market investments, State Street Investment Management has taken a minority stake in Coller Capital, a leader in the private market secondaries sector. This partnership promises to drive innovation and broaden the global reach of both firms.

Expanding Horizons in Private Market Access

State Street, with over US$5 trillion in assets, sees this investment as a pivotal step to expand its presence in private markets. As stated by State Street, the partnership will provide their clients unprecedented access to Coller Capital’s expertise in private equity and private credit secondaries. According to MoneyManagement.com.au, this aligns with a growing trend where secondaries are viewed as a key asset allocation component due to their unique risk-return profile and liquidity features.

Coller Capital’s Vision for Growth

Coller Capital, managing around US$46 billion, views this collaboration as an essential part of its long-term growth strategy. The strategic investment will not alter their investment procedures but will fuel further growth, enabling broader access to the lucrative secondaries market.

Market Potential and Future Outlook

With the private market secondaries transactions expected to soar to US$500 billion by 2030, the timing of this partnership could not be more opportune. Yie-Hsin Hung, Chief Executive of State Street IM, emphasizes the growing client demand for diversification and innovative investment solutions.

Innovative Solutions for Broader Access

Jeremy Coller, CIO and Managing Partner at Coller Capital, expresses enthusiasm about the partnership, highlighting the potential to democratize access to secondaries markets, traditionally dominated by institutional investors. This move could unlock significant diversification and return potential for a more extensive range of investors.

Conclusion: A New Era in Private Markets

State Street’s investment in Coller Capital is more than a financial transaction—it’s a strategic alliance set to redefine access to private market opportunities. This partnership exemplifies a commitment to innovative solutions and promising outcomes for investors globally.