Investcorp and Coller Capital sign secondary transaction

14 Jan 2019

Investcorp, a leading global provider and manager of alternative investment products, today announced that it signed a secondary transaction in relation to a number of assets from its European private equity portfolio [“the portfolio”], under a new fund arrangement, subject to receipt of relevant regulatory approval and other customary closing conditions. The fund will be capitalised with approximately US$ 1 billion of aggregate commitments.*

Coller Capital’s current fund, Coller International Partners VII, will underwrite the new fund, with Investcorp retaining a continued interest in the portfolio through a meaningful GP commitment to the fund. The transaction also includes fresh capital for any follow-on investments, future investments and co-investments. Investcorp’s European Private Equity team will manage both the assets acquired through the secondary transaction and the fund’s new capital, as it continues to invest in mid-market buyout transactions across Europe.

This transaction, when closed, will provide relevant existing investors with immediate liquidity for some of their exposures as well as an opportunity for Investcorp to seek to further create value through active management and additional capital that is being made available under the transaction.  

The signing of this transaction is a further key milestone in Investcorp’s ambitious growth strategy to reach US$ 50 billion of AUM over the medium term and follows Investcorp’s acquisition in 2017 of a US$ 11 billion AUM credit management business, Investcorp Credit Management, and in 2018, a strategic minority investment in Banque Paris Bertrand, an independent Swiss-regulated private bank based in Geneva.

Mohammed Alardhi, Executive Chairman of Investcorp, said; “The signing of this landmark transaction in the secondary private equity market is the latest step in our global growth strategy.     It demonstrates the continued desire by institutional investors to back Investcorp’s investment platform. We look forward, at closing, to welcoming Coller Capital to the distinguished list of global institutions who partner with us and to working with them in the coming years to maximise the value of the portfolio.”

Jeremy Coller, CIO of Coller Capital, said: “This transaction springs from a relationship of many years’ standing. It is a complex investment, of strategic importance to Investcorp, and we’re delighted to be their chosen partner.”

*based on FX rate at the end of election period