Single-asset processes, in which a GP moves a single investment out of an older fund and into a continuation vehicle, have become more popular as GPs look to extend ownership over growing businesses.
The expectation is that more GPs will look for opportunities to run such processes on assets trapped in older funds, especially now that exit timelines have been extended out after markets locked down during the pandemic.
Revelstoke Capital Partners, based in Denver, closed a single-asset process on a healthcare asset last year, which got a lot of attention from the market.
Now, the firm has completed its second such deal, moving a company called Fast Pace Urgent Care out of an older fund and into a continuation vehicle for more time to manage the investment, the firm said Tuesday.
Revelstoke raised $111 million as part of the single-asset process, through which the firm will retain a minority interest in the company. It’s not clear who led the secondary deal.
Revelstoke first invested in Fast Pace in 2016, which was backed by Shore Capital Partners. Fast Pace manages urgent care clinics in rural Tennessee and Kentucky.
Coller Capital led Revelstoke’s single-asset process for Upstream Rehabilitation, which closed after raising around $600 million. Park Hill Group worked as secondary advisor on the Upstream process.
Single-asset deals accounted for 30 percent of GP-led transactions in the first half, up from 20 percent in 2019, according to a first-half secondaries volume report from Evercore. GP-led deals were about 39 percent of an estimated $18 billion total deal volume in the first half, Evercore found.