Capital Dynamics offloads tail-end stakes – exclusive

The stakes include 2001-vintage Apax Europe V which still owns UK fashion retailer New Look.

Capital Dynamics has sold a portfolio of tail-end fund stakes to Montauk TriGuardSecondaries Investor has learned.

Capital Dynamics declined to comment.

The stakes were sold out of five Capital Dynamics funds of funds from the 1990s. The portfolio consists of between 10 and 15 interests in funds that are each 15 years or older and have little remaining value, a source familiar with the matter said.

It is understood Capital Dynamics chose to sell the fund interests now because the regulatory climate make it more expensive for the firm to hold on to the assets for another year or two.

Secondaries Investor revealed last week one of the funds is Industri Kapital 2000. Other known funds include Apax Europe V, according to UK regulatory filings.

Apax Europe V raised €4.4 billion in 2001. Limited partners in the fund include the California State Teachers’ Retirement System (CalSTRS), Colby College endowment and the Michigan Department of Treasury, according to PEI’s Research and Analytics division.

Apax Europe V was generating a net internal rate of return of 36.09 percent as of 31 March 2014, according to documents from CalSTRS, which committed $115 million to the fund.

Apax Europe V still retains its interest in UK fashion retailer New Look. In 2004 Apax acquired New Look in an £800 million take-private alongside Permira. The two firms have reportedly been trying to exit New Look since 2010 and recently hired Goldman Sachs to lead the sale process.

Apax declined to comment.

Montauk acquired the Apax and IK fund stakes using its Fund V which closed on $300 million in 2011. The Irvine, California-based secondaries firm has since raised another fund, which closed on $500 million last year.

Montauk TriGuard did not return a request for comment by press time.