European growth equity firm Palamon Capital Partners has sold Spanish care home operator SARquavitae in a deal that will return almost €140 million in proceeds to LPs in the firm’s second fund, it said on Monday.
The firm also said the exit will generate a multiple of 3x investors’ capital.
Palamon’s second fund, a 2005-vintage, €670 million vehicle, has now exited 13 of its investments at an average multiple of 2.4x and has five portfolio companies left. In total the fund is understood to be generating an IRR of close to 20 percent.
The firm has returned more than €400 million to investors during 2016 across exits that include Nordic energy business Eneas, on which the firm made 3.3x, and financial advisory Towry, on which the firm made 13x its money.
Palamon is understood to be in market with Palamon European Equity IV. The firm experienced a period of turbulence during the marketing of its third fund in 2013; having started to raise a conventional successor fund to Fund II, the firm ended up raising a €210 million two-year fund with backing from Adams Street Partners, the corporate pension plan of Honeywell, global private equity investors AlpInvest Partners, Quilvest and the endowment of Spelman College.