The private equity firm, which specialises in secondary direct transactions, likely will pay CIT’s year-end carrying value of the investments, according to a press release. CIT's unaudited 2003 financial statement values its direct private equity and venture capital investments at $101.1 million (€80 million). The portfolio includes stakes in 47 companies, according to the financial statement.
CIT reported a $60.5 million loss on its venture capital investments for the three months ending December 31.
The financial statement also lists interests in 52 private equity and venture capital funds valued at $148.8 million.
CIT is a publicly traded, Livingston, New Jersey-based consumer finance company with a current market capitalisation of roughly $8.23 billion.
Funding for the acquisition was provided by Goldman Sachs’ GS Vintage Funds II, a capital pool dedicated to secondary transactions in the private equity market.
Protostar is led by Joseph Haviv, a former partner at New York buyout firm First Atlantic Partners. Protostar targets transactions of between $50 million and $250 million in value.
Prior to finalising the deal, CIT must obtain waivers from approximately 75% of shareholders.