Investment bank Vision Capital sees a bright future for secondary deals, at least on the buyout side. The London-based firm announced last week that it acquired the investment portfolio of CS Structured Credit Fund in a partnership that includes Goldman Sachs’ GS Vintage Funds and Landmark Partners.
The investors are part of a $189 million partnership, that also includes other unnamed investors.
The acquisition price that the partnership paid for the portfolio was undisclosed.
The transaction was unique for a number of reasons.
The partnership bought a portfolio that consists of five investments for controlling stakes in pub and tavern operator Avebury Taverns and Elegant Hotels Group; interests in consumer debt firm Cabot Financial; highway rest area company RoadChef; and finance company Resource Partners Group.
The portfolio consists of synthetic secondaries, which allow primary fund investors to exit from an entire portfolio in a single transaction. Traditional secondary transactions occur when buyers obtain interests in a portion of a private equity fund, and are typically not holding direct interests in portfolio companies.
Also, secondary buyouts usually involve a single company transaction between two or more firms acting as buyer or seller rather than the interests of several companies changing hands.
Vision Capital was founded in 1997 by former Smith Barney European investment banking executive Julian Mash. The firm has closed on or advised more than 20 transactions, with 10 of those deals involving private equity firms and private equity portfolio companies.
The 11-person investment team focuses on European investments in the form of synthetic secondaries and advisory services.
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