Boston-based Charlesbank Capital Partners has agreed to acquire a stake in Overbay Capital Partners, a Canadian secondaries firm, in a deal valuing the company at C$200 million ($147 million), according to sources familiar with the matter. The middle-market buyout shop is making a strategic investment from its funds, signaling confidence in Overbay's business model and growth potential.

The transaction allows Overbay to maintain complete control over its investment activities while Charlesbank gains exposure to the Canadian secondaries market. Overbay will remain a significant long-term shareholder, preserving its independence and operational autonomy. This structure suggests both firms see value in a partnership that doesn't require full integration.

Secondaries firms like Overbay specialize in buying existing private equity stakes from limited partners seeking liquidity, a growing segment of the alternative assets market. The deal comes as investors increasingly look to secondary transactions for portfolio management and as capital deployment pressures mount in traditional private equity channels. For Charlesbank, this represents a targeted expansion into a niche but expanding market segment.