Lincolnshire’s First Third-Fund Exit Returns Half Of Fund


Price: $425 million

Return: 5.3x invested capital; net IRR of 416 percent

Seller: Lincolnshire Management

Buyer: AIG Highstar

Financial Advisor: Seller: Morgan Stanley

Legal Counsel: Seller: Kirkland & Ellis

Following the first exit rung up in Lincolnshire Management’s third fund, limited partners are more than halfway toward getting their money back.

Lincolnshire has sold port operator AMPORTS to AIG Highstar Capital, AIG Global Investment Group‘s infrastructure fund, for $425 million, generating a 5.3x multiple of invested capital and a net IRR of 416 percent, according to Lincolnshire President T.J. Maloney. That was enough to return 57 percent of each limited partner’s commitment to the third fund, said Maloney.

Just one year ago Lincolnshire paid $135 million to Associated British Ports for AMPORTS, a Jacksonville, Fla., company that operates in Benicia, Calif., Baltimore, Brunswick, Ga., and on both coasts of Mexico. At its ports, the company loads, unloads, inspects, stores and distributes cars for many of the world’s largest car makers. It also owns much of the property it operates on. Lincolnshire originally put $46 million of equity into the company to acquire a 90 percent stake.

Rob Collins of Morgan Stanley advised Lincolnshire on the sale and Kirkland & Ellis was its legal counsel. AMPORTS CEO Jim Davis will continue to head the company under the new ownership.

Lincolnshire has had a half dozen realizations in the past year, the other five coming from its 1999, $315 million second fund. Among those exits was the sale of Bankruptcy Management Solutions last summer, a deal that returned more than 15.1x invested capital to LPs, according to Lincolnshire. Overall, Lincolnshire’s second fund has returned nearly 2x invested capital. The firm is selling two other portfolio companies, and will sell the remaining four from the second fund over the next three years.

Founded in 1986, New York-based Lincolnshire has about $900 million under management. It has completed 55 acquisitions in all.—M.C.