Montagu Private Equity is approaching the finishing line on one of the largest GP-led deals in Europe this year.
Limited partners in the European mid-market buyout shop’s 2015-vintage Montagu V were given the option to roll into a continuation fund with Wireless Logic or sell their holdings to secondaries buyers, according to three sources familiar with the process.
Coller Capital and Hamilton Lane led the oversubscribed deal, which is being run by Evercore, according to one of the sources. Partners Group is understood to have made a significant investment.
Secondaries Investor understands that a process was proposed in the summer involving two assets from Fund V, with Montagu eventually deciding to proceed with one.
Wireless Logic is a UK-headquartered internet of things connectivity provider which Montagu bought from CVC Growth Partners in 2018. The company made four add-on acquisitions in the first half of 2021 before CVC sold its remaining minority stake to Montagu in June.
Montagu V raised €2.75 billion by final close in September 2015, according to data from affiliate publication PEI. Limited partners in the fund include Florida Retirement System Trust Fund, Greater Manchester Pension Fund and Ilmarinen Mutual Pension Insurance Company.
The fund generated a net IRR of 22.4 percent and net multiple of 1.57x as of 31 March, according to data from the Florida pension.
Montagu’s latest fund, Montagu VI, held a final close in October on €3.31 billion. It was targeting €3 billion, according to PEI data.
Of the $29 billion of GP-led deal volume in the first half of this year, about 45 percent was accounted for by single-asset continuation fund transactions, according to investment bank Jefferies.
Montagu, Coller, Hamilton Lane, Partners Group and Evercore declined to comment.
Article updated to reflect the correct target of Montagu VI