Electra Partners is pleased to announce that, on behalf of Electra Private Equity PLC ("Electra"), it has invested £19 million in Cordatus Loan Fund VI Limited ("Cordatus VI"), a new collateralised loan obligation ("CLO") fund managed by CVC Credit Partners, one of the world's leading CLO managers.
Cordatus VI is a €400 million CLO which invests in leveraged loans issued by predominantly private equity-backed companies in Europe. The fund has a 13-year life and will be invested in approximately 100 individual credits. Electra's investment is a majority interest in the CLO's equity.
This is the second CLO fund in which Electra has invested, following the £13 million investment in Tymon Park CLO Limited, in December 2015.
Alex Fortescue, Managing Partner at Electra Partners, said:
"We are delighted to have partnered with CVC Credit Partners, one of the best-performing CLO managers, to conclude this investment. As with Tymon Park, this investment is a strong fit with the debt element of our investment strategy. It offers the opportunity to earn attractive risk-adjusted returns from a diversified portfolio of senior debt issued by predominantly private equity-backed issuers. The bulk of this return is delivered as cash yield."
Alex Fortescue and Owen Wilson are responsible for Electra's investment in Cordatus VI.
This investment continues a busy start to Electra's financial year, which has seen realisations of more than £300 million and new investments or commitments to invest of over £200 million. Realisations announced since October include the exits of Daler-Rowney, MIMS and Zensar Technologies and the proceeds from the refinancing of the Park Resorts Group at the time of its merger with Parkdean Holidays. New investments and commitments to invest include the buyouts of Photobox Group and Grainger Retirement Solutions, and the acquisition of Bowlplex by The Original Bowling Company.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
Andrew Honnor and Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000
Nicholas Board and Andrew Kenny, 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. During the last 25 years it has invested in excess of £4.5 billion in over 200 deals. As at 30 September 2015, the firm had funds under management of over £1.8 billion including capital available for investment of nearly £350 million.
Electra Partners' flexible investment strategy allows it to invest broadly across the private equity market with a particular focus on Buyouts and Co-investments, Secondaries and Debt. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors.
The firm's major client is Electra Private Equity PLC ("Electra"), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra's long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 30 September 2015, Electra has seen diluted NAV per share growth of 244%. This is seven times the NAV per share return of the Morningstar Private Equity Index (ex. Electra). It is also equivalent to a ten-year annualised return of 13%, at the upper end of Electra's target range of 10-15% over the long-term.
For further information please visit www.electrapartners.com.
Electra Partners LLP is authorised and regulated by the Financial Conduct Authority.