LGT and Idinvest back Halder fund extension – exclusive

The German mid-market buyout firm has extended the life of its 2008-vintage fund by two years in a deal advised by Rede Partners.

LGT Capital Partners and Idinvest Partners have emerged as the lead buyers in the GP-led process on German private equity firm Halder‘s 2008-vintage fund, sister publication Secondaries Investor has learned.

The firms led a consortium of buyers who acquired stakes in the Frankfurt-headquartered firm’s Halder-GIMV Germany II and committed fresh capital for new investments, according to a source familiar with the matter. As part of the deal, Fund II will be extended by two years.

It’s not clear if the fresh capital is part of a stapled deal.

Existing limited partners in the €325 million fund were given the opportunity to stay or sell their stakes to the consortium. Pricing details and the size of the deal and the number of sellers were unclear.

It is understood that advisory firm and placement agent Rede Partners advised on the transaction, which closed at the end of January.

Secondaries Investor reported in August that Halder was working with Rede on a potential fund restructuring process.

Fund II launched in December 2007 and reached hard-cap within three months. Due to the financial crisis, its investment period did not begin until 2009 and it did not make its first acquisition until 2011, according to Halder’s website.

Halder primarily buys majority stakes in small- and medium-sized enterprises with a turnover of more than €400 million, usually through a management buyout. It has raised five funds in all, the first three focused on Germany and Benelux, the most recent two, GIMV Germany and GIMV Germany II, focused purely on Germany.

Seven assets remain in the fund, according to Halder’s website, including prosthetics manufacturer Amoena, Italian luxury leather goods company BMB and medical precision parts manufacturer Klingel.

There were 13 initial investors in the fund including Adams Street Partners, AlpInvest Partners and fund of funds ACG Capital.

Rede and Idinvest declined to comment. Halder and LGT had not responded by press time.