The secondary market continues to widen its appeal in Europe, and direct portfolio deals continue to increase their share within the secondary market. The latest European direct secondary deal, announced late last month, was between London-based buyer Vision Capital and Legal & General Ventures (LGV). Vision agreed to buy a portfolio of seven companies from LGV with a commitment of $155 million.
Neither side would disclose the price Vision agreed to pay for the assets; the $155 million includes funding for follow-on commitments.
Vision will acquire majority stakes in Trident Components Group, a London-based provider of high pressure die-cast light metal components; fuel product company Coal Products Ltd.; and TM Group, the Essex, England-based retail store chain.
The portfolio also contains minority interests in Aluset, Interdean, direct marketing firm IPT and Unipoly.
“There are a number of smaller investments that don’t take up a lot of time but don’t hold a lot of value for us,” says Steven Phillips, an associate director with LGV. “This was a relatively quick and easy way to exit the tail of the portfolio in one deal.”
Vision Capital arranged for financing the buy with commitments from Goldman Sachs Asset Management, Landmark Partners, Paul Capital Partners and Pantheon Ventures. Like its London counterparts Nova Capital Management and Swiss colleagues Cipio Partners, Vision finances its deals using capital raised from larger secondary players and other larger buyers.
This is the third time that Vision Capital has worked with Goldman Sachs, Landmark, and Paul Capital on financing a secondary transaction. Other backers that Vision has received backing from include AIG Retirement Services, the Broad Foundation and Unigestion. Vision has purchased the portfolios of the CS Structured Credit Fund and Morgan Grenfell Private Equity.
Vision Capital was founded in 1997 and has about $500 million under management, which is overseen by 11 employees.