Advanced Capital, an Italian fund of funds manager, is near to closing the sale of a tail-end buyout portfolio from its 2006-vintage fund to a single buyer, Secondaries Investor has learned.
It is understood the undisclosed buyer outbid several other secondaries firms and will acquire most of the portfolio. Pricing details were not revealed.
UBS ran a process to find buyers for the interests in the Milan-based manager’s ACII fund, a spokesman for Advanced confirmed. The portfolio included stakes in 26 funds and had a total net asset value of $145 million as of 30 September.
ACII closed on €321 million and had an 8 percent net internal rate of return and a 1.6x net multiple as of 30 September, according to an Advanced spokeswoman. Around 40 percent of the fund was invested in large buyout, 15 percent in mid-market buyout and 35 percent in debt funds.
US assets accounted for 52 percent of the fund, with 27 percent in Europe and 21 percent in the rest of the world.
Limited partners in ACII include charitable foundation Fondazione Cassa di Risparmio di Padova e Rovigo, which committed €10 million, according to PEI data.
Founded in 2001, Advanced Capital invests in private equity, real estate and energy, and allocates a significant portion of its funds toward counter-cyclical distressed and debt strategies in anticipation of a market correction, according to its website. The firm has €700 million in assets under management, PEI data revealed.
Secondaries funds and funds of funds have been actively disposing of tail-end stakes this year, such as Partners Group’s sale of an €800 million portfolio held in its 2007-vintage secondaries fund to Goldman Sachs, Secondaries Investor reported.
Sales of tail-end portfolios during the first half of the year accounted for 30 percent of deal volume, compared with 20 percent during all of 2015, according to a July report by Greenhill Cogent.
UBS declined to comment.
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