Hobe Mountain Capital Spins Out Of Declaration Capital

Hobe Mountain Capital, a newly formed private equity firm focused on lower middle market secondary investments, has officially launched following its spinout from Declaration Capital, the family office of financier and philanthropist David M. Rubenstein. Founded by Alexa Rachlin and Todd Buys, the firm aims to capitalize on the rapid growth of secondaries, especially in smaller, fragmented segments that are often underserved by large funds.

Focus and Strategy

Based in West Palm Beach, Florida, Hobe Mountain targets niche secondary opportunities where speed, relationship access, and tailored structuring can create value. The firm’s mandate includes:

• Acquiring limited partner interests and investing in GP-led continuation vehicles across private equity, venture capital, real assets, and natural resources.
• Deploying equity checks typically below $25 million.
• Maintaining a balanced mix of LP-led and GP-led transactions to optimize diversification and conviction.

This approach is designed to serve a wide universe of counterparties—from family offices and funds of funds to general partners and other institutions—seeking flexible liquidity solutions.

Market Backdrop

Secondary market activity has accelerated significantly. Industry estimates indicate volume surpassed $100 billion in the first half of 2025 and may exceed $200 billion for the full year. As exit timelines lengthen due to slower IPO and M&A activity, both sponsors and investors increasingly rely on secondaries to address liquidity and portfolio management needs.

Despite the sector’s growth, only a small portion of global secondary dry powder is managed by funds under $500 million—roughly 5% by recent estimates—creating space for specialized firms like Hobe Mountain to execute smaller, more complex transactions efficiently.

Founding Team

Co-founders Alexa Rachlin and Todd Buys previously led secondaries investing at Declaration Capital, where they built and managed diversified portfolios across private investment strategies. Rachlin, who holds an MBA with distinction and a bachelor’s degree cum laude from Harvard University, was a founding member of Declaration Partners and earlier served as 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.

Opportunity Set

Hobe Mountain’s leadership sees significant opportunity in the lower middle market, where smaller deal sizes and bespoke structures can offer attractive risk-adjusted returns. The firm intends to leverage its network of relationships with general partners, limited partners, and intermediaries to source off-market opportunities and navigate complex situations swiftly.

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 mindset 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, Hobe Mountain Capital

Looking Ahead

As secondaries continue to expand in scale and strategic importance, Hobe Mountain Capital plans to deploy its focused approach—combining targeted check sizes, flexible structuring, and deep relationships—to capture opportunities at the smaller end of the market and deliver differentiated outcomes for investors.