Key Takeaways
- • David Rubenstein's family office, Declaration Capital, has spun out a dedicated secondaries investment firm called Hobe Mountain Capital to capitalize on the booming private equity secondaries market.
- • Secondary deal volume reached $102 billion in the first half of 2025, marking a record and surpassing typical full-year totals, demonstrating strong institutional demand for second-hand stakes in private asset vehicles.
- • Hobe Mountain Capital is led by former internal executives from Declaration Capital and is positioned to target niche secondaries opportunities in the lower-middle market segment where data gaps create pricing inefficiencies.
- • The spinout allows the family office to accept third-party capital alongside Declaration Capital's commitments, scaling the secondaries platform beyond single-family office constraints.
Summary
David Rubenstein's family office has established Hobe Mountain Capital as a standalone secondaries investment firm, capitalizing on accelerating market demand for second-hand stakes in private equity and other alternative asset vehicles. The spinout from Declaration Capital, Rubenstein's single-family office, reflects the co-founder and co-chairman of Carlyle Group's strategic positioning to capture growth in the secondaries market, which has demonstrated exceptional momentum in 2025.
The timing of the spinout aligns with record secondary market activity. Deal volume reached $102 billion in the first half of 2025, surpassing most full-year totals and underscoring the sustained institutional appetite for secondary transactions. This robust pipeline has prompted leading alternative asset managers and family offices to dedicate specialized resources to the sector, with Rubenstein's move representing a high-profile validation of the market's structural expansion.
Hobe Mountain Capital will be led by former Declaration Capital executives and is designed to address inefficiencies at the smaller end of the secondaries market. The firm's strategy centers on targeting niche opportunities where limited data availability creates pricing discrepancies and valuation opportunities. By spinning out as a separate entity, Hobe Mountain can accept third-party capital commitments beyond Declaration Capital's own allocation, scaling the platform and diversifying its capital base while maintaining investment discipline typical of family office operations.
The spinout underscores a broader trend among institutional investors—particularly family offices with substantial dry powder—toward specialized secondaries strategies. Unlike traditional private equity fundraising that operates under shorter fund cycles and performance pressure, secondaries platforms can pursue longer-dated, patient capital strategies aligned with family office investment horizons and risk tolerance. Rubenstein's entry into the dedicated secondaries space reflects confidence in the market's structural durability and the competitive advantages available to sophisticated players with deep deal sourcing networks and valuation expertise.
The timing of the spinout aligns with record secondary market activity. Deal volume reached $102 billion in the first half of 2025, surpassing most full-year totals and underscoring the sustained institutional appetite for secondary transactions. This robust pipeline has prompted leading alternative asset managers and family offices to dedicate specialized resources to the sector, with Rubenstein's move representing a high-profile validation of the market's structural expansion.
Hobe Mountain Capital will be led by former Declaration Capital executives and is designed to address inefficiencies at the smaller end of the secondaries market. The firm's strategy centers on targeting niche opportunities where limited data availability creates pricing discrepancies and valuation opportunities. By spinning out as a separate entity, Hobe Mountain can accept third-party capital commitments beyond Declaration Capital's own allocation, scaling the platform and diversifying its capital base while maintaining investment discipline typical of family office operations.
The spinout underscores a broader trend among institutional investors—particularly family offices with substantial dry powder—toward specialized secondaries strategies. Unlike traditional private equity fundraising that operates under shorter fund cycles and performance pressure, secondaries platforms can pursue longer-dated, patient capital strategies aligned with family office investment horizons and risk tolerance. Rubenstein's entry into the dedicated secondaries space reflects confidence in the market's structural durability and the competitive advantages available to sophisticated players with deep deal sourcing networks and valuation expertise.
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