Charlesbank to make majority investment in fund admin Petra

Petra Funds Group will receive a majority investment from mid-market GP Charlesbank Capital Partners.

The firms said that the growth investment will enable Petra to add and retain staff, and to scale a myriad of offerings such as fund accounting, advisory for fund launches, reporting, compliance and services for management companies.

Terms were not disclosed for the deal, which is slated to be wrapped up during the fourth quarter of this year.

The investment marks a significant milestone for Petra. The service provider was founded in 2021 as a lift-out of staff from GP Riverstone, which is when groups of supporting employees leave for a third-party.

Stephen Coats, Petra founder and managing partner, discussed the practice of lift-outs for a Private Funds CFO feature last year on outsourcing.

The firms noted that Petra now provides fund administration, back and middle office services to private equity and private credit firms. It is responsible for administering funds and other entities with over $110 billion in assets.

The service provider has grown through a mix of lift-outs and organic growth, the firms said.

Charlesbank, located in Boston and New York, has $8 billion in assets under management, according to data from affiliate title Private Equity International.