Information on the target
Flexstone Partners, a private markets affiliate of Natixis Investment Managers, has successfully acquired Glouston Capital Partners, a Boston-based private equity secondaries specialist. This strategic acquisition, finalized on September 2, 2026, has propelled Flexstone's assets under management (AUM) to over $15 billion, marking a significant milestone in its growth trajectory. Glouston, with a robust history spanning 32 years, specializes in North American middle-market buyout secondaries, having executed 290 secondary transactions and managing $3.4 billion in assets at the time of the acquisition.
The integration of Glouston into Flexstone is designed to enhance the latter's capabilities across primary, co-investment, and secondary strategies. The six founding partners of Glouston have transitioned into Managing Partner roles at Flexstone, ensuring continuity in leadership and investment strategy. Importantly, all existing fund structures, limited partner (LP) agreements, and investment mandates remain unchanged, providing reassurance to current investors.
Industry overview in the target’s specific country
The Closed End Funds industry in the United States has experienced significant growth and transformation in recent years, driven by increasing demand for liquidity and diversification among institutional investors. The secondaries market, in particular, has gained traction as a viable solution for limited partners seeking to manage their private equity exposure without enduring lengthy hold periods. In 2025, transaction volumes in the secondaries market reached an impressive $226 billion, reflecting a 41% increase from the previous year, and the first half of 2026 alone surpassed $120 billion, marking the strongest first half on record.
This surge in activity can be attributed to a structural shift in investor preferences, as pension funds, endowments, and family offices look for ways to navigate the liquidity challenges posed by a constrained IPO market and prolonged M&A activity. The ability to sell fund stakes at a discount to net asset value allows investors to access liquidity more rapidly, thereby enhancing their overall portfolio management strategies.
Moreover, the competitive landscape within the Closed End Funds industry has intensified, with large asset managers increasingly seeking to establish or expand their secondaries capabilities. The recent acquisitions by major players such as EQT and CVC Capital Partners underscore the growing recognition of the secondaries market as a critical component of private equity investment strategies. As institutional capital continues to flow into this space, the demand for specialized secondaries managers is expected to rise, further fueling consolidation and competition.
In this evolving environment, firms like Flexstone Partners that can effectively leverage their expertise in secondaries investing will be well-positioned to capitalize on emerging opportun…