Vision Capital, the London-based secondary direct investor, has agreed to purchase seven portfolio companies from UK mid-market private equity firm Legal & General Ventures (LGV). Financial details of the transaction were not disclosed.
The portfolio comprises automotive components maker Trident Component Group, UK smokeless fuel manufacturer Coal Products and TM Group, a UK chain of convenience stores. It also includes interests in IPT, Interdean, Unipoly and Aluset.
The deal is backed by a number of institutions including secondary investors Landmark Partners, Paul Capital Partners and Goldman Sachs Private Asset Management. Goldman is an investor in a Vision-led initiative for the third time.
In total, €120 million of capital has been committed to the deal, in part to underwrite the purchase of the portfolio and also to provide the underlying portfolio companies with follow-on capital.
LGV has sold the assets in question because they are outside its stated core sectors: leisure, consumer and services. LGV chief executive Adrian Johnson said in a statement: “This transaction has removed an area of complexity from the historic LGV portfolio, allowing us to completely focus on the UK sectors of leisure, consumer and services.” LGV’s focus on the three sectors is the result of a change of strategy that was announced last year.
Commenting on the transaction in an interview with PEO, Julian Mash, chief executive of Vision Capital, said: “This deal, like almost all of our deals, came about through a direct relationship and direct, collaborative discussions with the
On the development of the market of direct secondaries in private equity, Mash said: “There is a growing interest and acceptance that this is not an aberration and the sector is growing. This particular transaction is helping an ongoing, successful private equity firm move faster, rather than helping someone exit.”
In previous transactions, Vision Capital acquired direct portfolio interests from a fund controlled by Credit Suisse First Boston, and from partnerships advised by Morgan Grenfell Private Equity, the former UK private equity arm of Deutsche Bank.
As the London-based private equity arm of UK insurer Legal & General Group, LGV completed its most recent annual fundraising round last July, having collected £180 million (€268 million; $329 million) of fresh capital.