Chris Witkowsky
Continuation fund will hold Wellspring portfolio companies SupplyOne, Cadence and Pentec Health, and includes $125m of unfunded capital for growth.
The deal comes as LP secondaries sales keep steady and drive activity with strong pricing and sellers eager to capture liquidity from private equity portfolios.
Exit paralysis is especially taxing for LPs, who have endured cumulative negative cashflows since 2019.
While LPs face multiple challenges, especially from slowing cashflows from their PE portfolios, they remain interested in building exposure to the asset class.
Secondaries advisory has become a desired function at investment banks, and many smaller, mid-market focused financial institutions brought on secondaries talent in recent years.
The continuation fund for global life science ingredients distributor Barentz is understood to be around €850m in size.
The deal is an example of the kind of complex transactions LPs can use to capture liquidity from their private equity programs at a time of slow exit activity.
LP sales continue to drive secondaries activity as limited partners look for ways to capture liquidity from their illiquid PE portfolios amid a slowdown in distributions.
Certain characteristics help a new firm stand out in the crowded yet sluggish fundraising market, and Weymouth's firm is in position as a seeder to sort out those firms building for the future.Â
In a conversation with Warburg Pincus CEO Chip Kaye, Eneasz Kadziela, the head of private equity with the New York City comptroller, said the frantic fundraising pace of 2021 was something of a burden for LPs.
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