German firm Quadriga restructures 2006 vintage Fund III

  • Quadriga’s third fund is a 2006 vintage
  • Firm wanted more time to exit, get liquidity for LPs
  • ICG led the restructuring process

Quadriga Capital, a German private equity firm, has completed the restructuring of its 2006 vintage Fund III, moving remaining assets into a new vehicle with reset terms, sources told Buyouts.

Intermediate Capital Group led the deal, which included around 174 million euros ($205 million) of net asset value, one of the sources said. Quadriga closed Fund III on 525 million euros in 2006.

About 70 percent of the LP base chose to sell their interests in the fund, while 30 percent decided to roll into the new vehicle, the source said.

Existing LPs that rolled into the new vehicle did so on substantially the same terms they had, save for the duration of the new vehicle. The term on the new vehicle is not exactly clear; in general such funds get terms of four to five years.

The GP remained in place on the new vehicle, the source said. Quadriga, Frankfurt, is led by Managing Partners Andreas Fendel and Philipp Jacobi. Chairman Max Römer is founding partner of Quadriga.

Park Hill Group was intermediary on the process. Quadriga did not respond to a request for comment.

The deal was meant to give the GP more time to exit investments out of Fund III and provide liquidity to LPs who wanted it, sources said. The deal did not involve any sort of distress and the GP continues to be active.

Quadriga closed its 2013 vintage fourth fund on about $675 million (574.2 million euros).

ICG closed its second fund, ICG Strategic Secondaries II Fund, on $1.1 billion earlier this year.

Direct secondaries like GP restructurings increased 26 percent in the first half to $7.7 billion from $6.1 billion in the year-earlier period, intermediary Setter Capital said. Total secondary volume in the first half was $29.1 billion, Setter said.

Action Item: Check out Quadriga’s Form ADV here:

The skyline, with its characteristic banking towers, is reflected in river Main in Frankfurt on Oct. 1, 2017. Photo courtesy Reuters/Kai Pfaffenbach