Palamon processes $317m partial exit

The sale of Retail Decision's Australian payment processing division has returned 'substantially all' of the initial investment made by Palamon, Alpinvest and Morgan Stanley.

Palamon Capital Partners and its co-investors have recouped their initial investment in Retail Decisions (ReD), a payment processing company taken private in 2006 for around £200 million.

The European private equity firm, along with co-investors Alpinvest Partners and Morgan Stanley Alternative Investment Partners, have partially exited their holdings with the A$353 million (€243 million; $317.5 million) sale of ReD’s Australian operations to Wright Express, a US payment processing company.

ReD's financial sponsors continue to have a controlling interest, according to a statement. The company will use proceeds from the sale to pay off debts as well as shareholders.

This transaction allows Palamon to return substantially all of our investment in ReD to investors.

Fabio Massimo Giuseppetti

“This transaction allows Palamon to return substantially all of our investment in ReD to investors”, said Palamon partner Fabio Massimo Giuseppetti. The deal marks Palamon’s third exit this year, he said, adding that it meant the firm had realised aggregate proceeds on its investments this year in excess of €170 million.

Following the sale of the Australian businesses, ReD will consist of payment fraud prevention and processing business active in Europe, the Americas, Asia-Pacific and South Africa. The company caters to clients in the global telecommunications, retail, travel, petroleum and e-commerce sectors such as Wal-Mart, Macy’s, Bloomingdale’s, T-Mobile, Travelocity and Virgin Mobile. 

Last year, ReD sold off a UK-based subsidiary to Fleetcor, another private equity-backed business in the same industry, for around £50 million.

Palamon primarily focuses on European companies across multiple sectors. Some current and former investments include UK financial advisor Towry, Italian tax and accounting service provider TeamSystem and German-based themepark operator Starparks.