Goldman Sachs buys Tredegar portfolio

Goldman Sachs has acquired a portfolio of venture capital investments from US plastics group Tredegar in a deal valued at $75m.

(PrivateEquityCentral.net) Goldman SachsGS Vintage Fund II has acquired all of plastics and aluminum company Tredegar Corp’s private equity partnership interests and W Capital Partners, an independent private equity manager that has worked with GS Vintage funds in the acquisition of venture capital and private equity portfolios, acquired Tredegar’s direct investment portfolio.

 

Most of Tredegar’s investments were in the life sciences, communications, and information technology industries, according to a press release.

 

Tredegar, which manufactures plastic films and aluminum extrusions through its various subsidiaries, expects to receive $75m in cash after taxes. The company also operates a biotechnology company. Tredegar’s sale was represented by Probitas Partners, an independent provider of integrated, alternative investment solutions. Probitas provides fund placement and liquidity solutions.

 

In 2001, Tredegar formed Perennial Ventures to manage both the company’s new and old venture capital investments. Perennial Ventures is now disbanded and the status of the firm’s principals is now unclear.

 

Probitas conducted an auction for the assets, according to a person close to the transaction.

 

This is the latest in a string of secondary purchases. Last month, Philadelphia-based LLR Partners and Rosemont-based secondary firm MidCoast Capital announced they had partnered with former managers of Dime Capital Partners to acquire the investment assets of that firm. Dime Capital Partners’ management will continue to manage its portfolio of 30 equity and debt investments.

 

London-based secondary firm Coller Capital teamed with New Venture Partners to acquire British Telecom’s in-house venture capital unit Brightstar. All parties involved agreed commit $100m total to the venture, called NVP Brightstar. That money will be used to acquire Brightstar’s current portfolio of companies as well as future investments.

 

Also in February, Goldman Sachs Private Equity Group backed Vision Capital’s purchase of four portfolio companies from Morgan Grenfell Private Equity, Deutsche Bank’s UK buyout business in a deal worth around E100m.

 

W Capital Partners specialises in the acquisition and management of private equity investment portfolios from corporations and financial institutions. The firm is affiliated with the GS Vintage Funds, a series of investment partnerships managed by Goldman Sachs’ private equity group.