Small PE shop completes tender offer on 2008 fund

  • More than 80 pct uptake in Fund I LP base
  • Deal included staple of fresh capital
  • One asset of significance left in fund

Secondaries get done in the smallest end of the market, though such deals usually fly under the radar.

One such recent deal involved Larsen MacColl Partners, a small investment shop in Wayne, Pennsylvania. The firm completed a process enabling investors in its 2008 debut fund to cash out their stakes in the pool, sources said.

Larsen MacColl Partners I has two companies remaining, one of which — live-music-venue chain Tin Roof — represents most of the remaining value. The other company in Fund I is Wall Brothers, a supplier of architectural glass and glazing products in the Southeast.

The firm received strong uptake by investors in Fund I, with more than 80 percent choosing to sell into the tender offer process. It’s unclear who the buyer or buyers were in the deal. Griffin Financial Group was secondary adviser on the transaction.

The deal was worth a total of around $15 million, according to Paul Delaney, senior managing director with Griffin Financial. It also included a staple of fresh capital for follow-on investments for the remaining portfolio, Delaney said.

Larsen MacColl Partners raised three funds: Fund III was targeting $40 million in 2014; Fund II targeted $40 million in 2010; and the debut targeted $25 million in 2007. It’s unclear how much each fund closed on.

Griffin last year worked on another small tender-offer process, for Detroit-based Superior Capital Partners’s first fund.

That transaction, which also included a shot of fresh capital for follow-on investments into the Fund I portfolio, attracted more than 80 percent of the Fund I LP base to sell stakes.

Action Item: Check out Larsen MacColl’s Form ADV here: