Hobe Mountain Capital, a newly formed private equity firm specializing in lower middle market secondary investments, has officially launched following its spinout from Declaration Capital, the family office of financier and philanthropist David M. Rubenstein. The new firm, founded by Alexa Rachlin and Todd Buys, seeks to capitalize on the rapid growth of the secondary investment market, particularly within smaller, fragmented segments that remain underserved by large funds.
Based in West Palm Beach, Florida, Hobe Mountain focuses on acquiring partnership interests and investing in GP-led continuation vehicles across private equity, venture capital, real assets, and natural resources. The firm typically commits equity checks below $25 million and maintains a balanced portfolio between LP-led and GP-led transactions to optimize diversification and conviction.
The firm’s launch comes amid a surge in secondary market activity. According to Evercore, secondary market volume surpassed $100 billion in the first half of 2025 and is expected to exceed $200 billion for the whole year. The sector’s expansion reflects its growing strategic importance in private capital markets, as both sponsors and investors increasingly turn to secondary transactions to address liquidity challenges caused by prolonged exit slowdowns in IPOs and M&A.
Despite this surge, only about 5% of global secondary dry powder resides in funds smaller than $500 million, presenting an opening for specialized managers like Hobe Mountain to deploy capital efficiently in niche transactions.
Rachlin and Buys bring a deep background in private equity and family office investing. Both previously oversaw Declaration Capital’s secondaries strategy, where they built experience managing diversified portfolios across private investment strategies. Rachlin, who holds both an MBA with distinction and a bachelor’s degree cum laude from Harvard University, was also a founding member of Declaration Partners and an investment director at Cambridge Associates. Buys, a CFA Charterholder, spent more than a decade at Cambridge Associates managing private equity portfolios before joining Declaration Capital in 2022. He holds an MBA from Northwestern University’s Kellogg School of Management and a BA magna cum laude from Calvin College.
Hobe Mountain’s leadership sees a significant opportunity in serving investors seeking liquidity solutions at the smaller end of the market. The firm plans to utilize its founders’ network of relationships with general partners, limited partners, and intermediaries to identify attractive off-market opportunities.
Key Quotes
“The rise of the secondaries investment market has created significant opportunity in the lower middle market as more established players have gravitated to larger deals. We believe our industry relationships, partnership-oriented approach, and long-term mind set make us a desirable counterparty for family offices, funds of funds, general partners, individuals, and other institutions.”
Alexa Rachlin, Co-founder and Managing Partner, Hobe Mountain Capital
“The prolonged slowdown in traditional exit activity (IPOs and M&A) and resulting extended hold periods have created a liquidity crunch for LPs. Our team brings diverse experience from leading investment firms and family offices, and we work closely together to uncover opportunities, navigate complexity, and deliver results for our investors.”
Todd Buys, Co-founder and Managing Partner, Hobe Mountain Capital
