Capital Dynamics picks up Advanced Capital portfolio – exclusive

The investment firm outbid several secondaries buyers to acquire stakes held in the Italian manager's 2006-vintage fund of funds, Secondaries Investor has learned.

Capital Dynamics has emerged as the buyer of Italian fund of funds Advanced Capital’s 2006 portfolio, Secondaries Investor has learned.

The Zug, Switzerland-headquartered investment firm outbid several secondaries firms to acquire the stakes in a deal that closed in December, according to two sources familiar with the transaction. Pricing details were unclear.

It is understood there are a few remaining stakes that are yet to be transferred for administrative reasons.

Capital Dynamics is investing its 2014-vintage Global Secondaries IV fund, which held its final close on $564 million in June, above its $350 million target, according to PEI data. It was not clear if the firm used this fund to acquire the stakes.

Milan-based Advanced came to market with the bundle of stakes held in its €321 million ACII fund in a process run by UBS, as Secondaries Investor reported in December. The portfolio contained stakes in 26 buyout funds and had a net asset value of around $145 million as of 30 September.

ACII had an 8 percent net internal rate of return and a 1.6x net multiple as of the same valuation date, an Advanced spokeswoman said in December. Around 40 percent of the fund was invested in large buyout, 15 percent in mid-market buyout and 35 percent in debt funds.

UBS declined to comment. Capital Dynamics and Advanced Capital did not return requests for comment.