Mubadala Capital has acquired a minority stake in New York-based secondaries investment manager LSV Advisors, expanding its exposure to the growing market for private equity continuation vehicles, according to a report by Bloomberg.

LSV Advisors, founded in 2005 and managing approximately $5bn in assets, specialises in single-asset continuation funds.

LSV founder and chief executive David Tisch reportedly said the firm intends to reinvest a substantial majority of the proceeds into new transactions, supporting its expansion as demand for GP-led secondary solutions increases. Around 125 continuation funds are expected to enter the secondary market during the fourth quarter, according to PJT Partners, with most single-asset vehicles expected to be valued below $1bn.

Mubadala Capital, which manages more than $60bn, has increasingly pursued strategic investments in specialist alternative asset managers. The firm acquired a 42% stake in credit manager Silver Rock Financial last year and is exploring further partnerships across infrastructure, structured finance and hybrid credit. Evercore advised Mubadala Capital on the LSV transaction, while Houlihan Lokey advised LSV.