​Portugal’s Explorer struggles to close staple

The lower- and mid-market-focused firm had hired Greenhill Cogent to work on a tender offer process on its 2009-vintage fund.

Explorer Investments, a Portugal-focused private equity manager, is struggling to complete a stapled deal due to an absence of willing sellers, sister publication Secondaries Investor has learned.

The Lisbon-headquartered firm, which focuses on the Portuguese lower and mid-market, has been working with Greenhill Cogent on a tender offer process on its 2009-vintage Explorer III fund, according to two sources familiar with the deal.

Explorer chose two secondaries buyers last year to acquire stakes in the fund and commit to Fund IV, one of the sources said. Brightening prospects for the €135 million Explorer III, in line with the recovery of Portugal’s economy, have resulted in fewer limited partners than expected wanting to sell their stakes, the source added.

The European Investment Fund is an LP in Explorer III, according to PEI data.

Stapled deals, in which a buyer acquires stakes in a GP’s existing fund and commits primary capital its new fund, have made headlines this year with Sweden’s EQT, the UK’s BC Partners and Abu Dhabi’s Mubadala Capital using the transactions to raise blindpool vehicles.

Explorer and Greenhill declined to comment.

The read the full story, please visit Secondaries Investor.