BC Partners recorded a loss of around $300 million (€202.9 million) after selling US automobile parts company Mark IV Industries, according to a City source.
The firm and a number of unnamed investors sold Mark IV to Sun Capital Partners for around $70 million in January, the source said. BC Partners had written down the deal two years ago and was able to recoup some of its investment via several recapitalisations before that point, the source said.
The difficulties at the company had already been reflected in the performance of BC Partners’ seventh fund, he said.
BC Partners bought the company in 2000 with the other investors for around $2 billion. At the time this was a record leveraged buyout in the US by a European firm.
The source said BC Partners $16 billion acquisition of satellite operator Intelsat is due to close in the next couple of weeks. The deal is a partial exit for the consortium of buyout firms Apax Partners, Permira, Apollo Management and Madison Dearborn.