Ex-Eaton Asia head targets asset management, GP stakes
Chris Lerner, formerly of Eaton Partners and MSA Capital, has established an asset management operation that will ultimately raise an Asian fund-of-funds and teamed up with US-based Bonaccord Capital Partners to expand its GP stakes business into the region.
The asset management unit – currently known as Asia Heritage – sits alongside placement agent Thrive Alternatives and fund management software provider Asense Technologies beneath an umbrella partnership – Verse Holdings – launched by Lerner and several ex-colleagues from Eaton, according to a source close to the situation. Lerner declined to comment on his plans.
Asia Heritage has secured an anchor LP and will start deploying capital in the second half of 2023. The firm is already assessing co-investment opportunities, but the goal is to have an even split between fund commitments, co-investments, and secondaries. Cheque sizes will be in the USD 5m-USD 10m range. There are likely to be between two and four investments this year.
Later in 2023, Asia Heritage will announce a joint venture with a global asset manager that has already raised multiple fund-of-funds across different strategies. These funds tend to be in the USD 100m range, and the Asia fund-of-funds launched by the JV is likely to be of similar size, the source added.
Asia Heritage will be the minority partner in the JV and focus on sourcing investments, with the global asset manager handling fundraising and back-office functions.
Bonaccord acquires minority interests in mid-market sponsors across private equity, private credit, real estate, and real assets, typically making investments of USD 70m-USD 100m. The firm closed its debut fund last year on USD 740m and is back in the market seeking USD 1.25bn for Fund II, which will add Asia to the mandate, albeit on a selective basis.
Bonaccord has entered into a strategic agreement with Asia Heritage, and in conjunction with that, Lerner has been appointed as an operating partner. He will lead the firm’s activities in Asia, which will include helping existing portfolio managers with business development in the region – all investments to date have been in North America and Europe – as well as sourcing new deal flow.
Lerner worked for Eaton for nine years through 2020, eventually becoming a partner and head of Asia Pacific for the placement agent. He then joined MSA as a managing partner, overseeing the Chinese GP’s fundraising and institutional operations and designing strategic initiatives.
Verse was established in conjunction with Jackson Chan, Gianluca D’Angelo, and Robin Tyrangiel, all of whom worked with Lerner at Eaton. Thrive was the first business launched with Chan, D’Angelo, and Tyrangiel as co-founders. Lerner serves as chairman of Verse, but he has never been involved in the day-to-day operation of Thrive.
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