Electra Partners today announces that it has invested £56 million in a portfolio of five secondary private equity funds. The portfolio was acquired from a bank at a discount to net asset value and is expected to generate strong cash distributions over the next few years. In addition there are commitments to the five funds of a further £21 million which are expected to be funded from cash flow, and a likely purchase of a sixth fund for an additional £9 million by the end of February, which would take the initial cash investment up to £65 million in total.
Commenting on this acquisition, Alex Fortescue, Chief Investment Partner at Electra Partners, said:
"Five of Electra's last six investments have been bank related assets - we see continued strong deal flow in this area. The portfolio we have acquired is an example of Electra using its flexibility to seek the best risk reward balance within the private equity market with the purchase price representing a discount to the valuation of the underlying assets."
The Electra Partners deal team for this transaction included Alex Fortescue, Chris Hanna and Tom Stenhouse.
This is the second major investment Electra Partners has announced this year, following the announcement last week of a binding offer to purchase a portfolio of UBM's Data Services businesses for £160 million. Electra Partners also had a busy 2012, in which it completed three major acquisitions and successfully realised seven investments in the year to 30 September 2012.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
For Alex Fortescue:
Nick Woods, M:Communications +44 (0)20 7920 2348
Andrew Kenny or Nicholas Board, Electra Partners +44 (0)20 7306 3902
Note to Editors:
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years experience in the mid-market buyout sector. As at 30 September 2012, the firm had funds under management of over £1.3 billion. The firm's flexible investment approach allows it to invest across a broad range of sectors and financial instruments including equity, senior equity, convertibles and mezzanine debt. Concentrating principally on Western Europe, and with the majority of investments expected to be made in the United Kingdom, Electra Partners typically seeks to invest in the region of £40 to £100 million of equity, in deals of up to £300 million enterprise value.
The firm's major client is Electra Private Equity PLC, a private equity investment trust which has been listed on the London Stock Exchange since 1976. The firm also manages the Electra Partners Club 2007 LP, a fund raised in 2008 for the sole purpose of investing alongside Electra in controlled investment situations.
For further information please visit www.electrapartners.com.
Electra Partners LLP is authorised and regulated by the Financial Services Authority.