Fidelity International Strategic Investments, set up seven years ago by Alokik Advani, has become the latest corporate venture unit to be sold off to become part of a private equity investment company, in this case 7Ridge.

For a CVC unit, this is about as dignified a parting of ways with a parent corporation as can be hoped for — the alternative is seeing the team disbanded and the portfolio sold off in piecemeal secondary transactions for pennies on the dollar. There’s still a discount in this kind of whole portfolio transaction — any secondary deal has that — but it is heartening to see whole CVC teams being taken on by PE in this way. It feels like a vote of confidence in their skills and sector knowledge. Many private equity companies are looking to expand into earlier-stage investments, and this is a good way for them to pick up the talent they need to make that transition. READ MORE