A consortium led by Goldman Sachs has committed €500 million ($745 million) to a new AAC Capital Partners buyout fund. The fund, which was established 18 months ago, already has 11 warehoused investments.
The Goldman Sachs consortium, which also comprises private equity firm AlpInvest Partners and the Canadian pension fund CPP Investment Board, is joined in the fund by the Royal Bank of Scotland, which has also committed €500 million.
“AAC invests on average €250 million per year. These two commitments basically forward-fund investment for the next four years,” a source close to the situation told PEO.
AAC Capital spun out from ABN AMRO when the Dutch bank was taken over in September 2007 by a syndicate led by RBS and also featuring Fortis and Santander.
After ABN AMRO was acquired, the new owners kept a minority stake in the bank’s private equity fund management company, which at the time was trading as ABN AMRO Capital and has since become AAC Capital. The stake has now been bought in its entirety by AAC Capital’s management.
The €1 billion commitment to the new fund follows the acquisition by the Goldmans Sachs consortium of ABN AMRO Capital’s legacy assets, a portfolio of 21 companies.
According to market sources, the portfolio, which contains assets in Scandinavia, UK and the Netherlands, has a fair value of around €700 million ($1 billion). It was sold at around €600 million, a discount of 15 percent.
News of the sale of ABN AMRO’s private equity assets emerged on Monday. The size of the secondaries deal is far in excess of previous press speculation, which had the deal estimated at seven assets worth around €200 million.
The private equity portfolio was one of three assets not assigned to individual members of the takeover consortium following the deal last year. The sale will net RBS, Fortis and Santander approximately €200 million each.