Key Takeaways
- • David Rubenstein's family office, Declaration Capital, has spun out Hobe Mountain Capital, a standalone secondaries firm focused on acquiring second-hand stakes in private asset vehicles, capitalizing on record market momentum in the sector.
- • The spinout enters a market experiencing unprecedented deal flow, with secondary deal volume reaching $102 billion in the first half of 2025—a record that already surpasses most full-year totals from prior periods.
- • Hobe Mountain Capital is led by former internal executives from Rubenstein's family office and targets niche secondaries opportunities, positioning itself to capture smaller-ticket deals where data gaps create investment opportunities.
- • The spinout reflects broader institutional appetite for secondaries as a distinct asset class, with family offices and large allocators increasingly dedicating capital to the market segment.
Summary
David Rubenstein, co-founder and co-chairman of The Carlyle Group, has spun out a dedicated secondaries investment firm from his family office, Declaration Capital, named Hobe Mountain Capital. The move underscores the growing institutional focus on secondary private asset markets as deal volumes reach historic levels.
The secondaries market—which focuses on purchasing existing stakes in private equity funds, infrastructure vehicles, and other private asset funds rather than making primary direct investments—has experienced exceptional growth in 2025. Secondary deal volume hit $102 billion in the first half of the year, marking a record and surpassing typical full-year transaction volumes from previous periods. This surge reflects increased liquidity demand among institutional and individual investors seeking to exit positions before fund maturity.
Hobe Mountain Capital, led by former executives from Declaration Capital, is positioned to target niche secondaries opportunities, particularly in segments where market data remains sparse. The family office's backing of the spinout signals confidence in the secondaries thesis and Rubenstein's continued focus on alternative asset strategies beyond Carlyle's core platform. By establishing Hobe Mountain as a standalone entity, Declaration Capital aims to compete more aggressively in a segment that has attracted major capital from pension funds, endowments, and other large allocators seeking to optimize private asset portfolios and manage fund maturity schedules more efficiently.
The spinout reflects a broader trend among prominent investment institutions and family offices of dedicating specialized capital to secondaries, a segment that has transitioned from opportunistic deal-by-deal investing to a core institutional asset class with dedicated fund vehicles and distinct strategy frameworks.
The secondaries market—which focuses on purchasing existing stakes in private equity funds, infrastructure vehicles, and other private asset funds rather than making primary direct investments—has experienced exceptional growth in 2025. Secondary deal volume hit $102 billion in the first half of the year, marking a record and surpassing typical full-year transaction volumes from previous periods. This surge reflects increased liquidity demand among institutional and individual investors seeking to exit positions before fund maturity.
Hobe Mountain Capital, led by former executives from Declaration Capital, is positioned to target niche secondaries opportunities, particularly in segments where market data remains sparse. The family office's backing of the spinout signals confidence in the secondaries thesis and Rubenstein's continued focus on alternative asset strategies beyond Carlyle's core platform. By establishing Hobe Mountain as a standalone entity, Declaration Capital aims to compete more aggressively in a segment that has attracted major capital from pension funds, endowments, and other large allocators seeking to optimize private asset portfolios and manage fund maturity schedules more efficiently.
The spinout reflects a broader trend among prominent investment institutions and family offices of dedicating specialized capital to secondaries, a segment that has transitioned from opportunistic deal-by-deal investing to a core institutional asset class with dedicated fund vehicles and distinct strategy frameworks.
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