Brazilian private equity firm GP Investments will acquire a 26.7 percent stake in Swiss-listed fund of funds APEN.
GP Investments will invest alongside Fortress Investment Group and secondary firm Newbury Partners, each of which will acquire a 13.4 percent stake. The total investment of $247 million by the three firms will allow GP Investments to expand into the co-investments, fund of funds and secondaries segments of alternatives. The remaining 46.5 percent of APEN will be held by its existing shareholders, aside from American International Group (AIG), which will no longer be a shareholder in the company. Formerly AIG Private Equity, APEN is a Swiss investment company established in 1999 and domiciled in Zug, Switzerland.
Following completion of the transaction, GP Investments will own a management company that will manage current and new investments to be made by APEN, which will change its focus from private equity fund investments to co-investments and secondary opportunities in emerging markets. About 84 percent of APEN’s current portfolio is comprised of private equity fund investments, primarily in Europe and North America.
“Considering the economic growth and need for capital in [emerging markets], we see a big potential for attractive private equity investment opportunities,” APEN chief executive officer David Salim said in a statement.
APEN’s current management team will be transferred to the new management company owned by GP Investments, which will be led by Salim.
As a result of the transaction, APEN will reduce its total debt from $298 million to $109 million. The deal also increases GP Investments’ assets under management by $421 million.
GP Investments has raised more than $5 billion and has invested in 52 transactions since its founding in 1993. The firm is investing its $1.05 billion Fund V.
GP Investments was not available for comment at press time.