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Milestone hires Park Hill for liquidity process

  • Park Hill to help run tender offer on older funds
  • Milestone seeks to enable older-fund LPs to cash out
  • Has had Fund V in market for some time

Milestone Partners, a lower-middle-market firm, hired Park Hill Group to help run a process that would enable investors in the firm’s older funds to cash out of their interests, three sources told Buyouts.

The Radnor, Pennsylvania, firm had been exploring a potential secondary process for a while and was interviewing advisers, sources previously told Buyouts.

The deal, while still in early stages, would allow LPs in Milestone’s third and fourth funds to sell their stakes in pools. This is known as a tender offer. It’s unclear whether as part of the process the GP is also considering soliciting for a slug of fresh capital that would go into a new fund, known as a staple.

Milestone has been in market with its fifth fund, according to a Form D filed in January 2018. How much the firm raised for Fund V is unclear.

Managing Partners Scott Warren and John Shoemaker did not respond to a request for comment.

Milestone invests in tech-enabled services, software, financial services and tech-driven manufacturing. Last year, the firm acquired mTAB, which provides a cloud-based analytics platform for clients in end markets like automotive, consumer electronics and insurance.

The firm raised $300 million for Fund IV in 2013; $240 million for Fund III in 2009, and $120 million for Fund II in 2004.

Fund III has been challenged, generating a 0.28 percent internal rate of return and a 1.01x multiple as of Dec. 31, 2017, Pennsylvania Public School Employees’ Retirement System data shows.

Fund IV, a better performer, was producing a 13.23 percent IRR and a 1.57x multiple, Pennsylvania PSERS data shows.

Action Item: Check out Milestone’s Form ADV here: https://bit.ly/2RioqIG