Elderstreet among stakes Hollyport buys from Fondinvest – updated

Elderstreet Capital Partners is a 1999-vintage £57m fund which still manages online trading platform Caplin.

Hollyport Capital has acquired another fund interest from mid-market Parisian firm Fondinvest Capital, according to UK regulatory notices.

Most recently Fondinvest sold its stake in Elderstreet Capital Partners (ECP), which it had initially committed to using its 1999-vintage €100 million fund of funds Fondinvest III.

Earlier this month, Hollyport Capital acquired a stake in Equistone Partners Europe Fund I from Fondinvest. A source familiar with the matter confirmed to Secondaries Investor that the two stakes are part of a portfolio Fondinvest has sold.

Fondinvest was unavailable to comment by press time.

ECP is managed by UK venture capital firm Elderstreet Investments. The 1999-vintage vehicle raised £57 million ($85.6 million; €76.2 million), according to PEI’s Research and Analytics division. Limited partners in the fund include Swiss fund of funds manager LGT Capital Partners and West Midlands Pension Fund.

ECP invested in early-stage media, telecommunications and technology companies in Western Europe.

Of the seven investments listed on the firm’s website, six have been sold, including telecom services company ET&T and mobile applications company weComm. The fund also sold its stakes in Computer Software Group to HgCapital and location search company Whereonearth to Yahoo.

Other investments include digital communication company Sift. Elderstreet invested an undisclosed amount in the company in 1999 and sold its £2.3 million stake back to Sift shareholders in 2012, according to a spokesperson from Elderstreet. 

In 2000 ECP also invested in cloud service broker Vordel. The firm invested in the company over six rounds and made 4.5x return on its original investment, the spokesperson said. Vordel was eventually sold to French-American company Axway Software in 2012.

The only remaining investment is online trading platform Caplin, which was acquired in 2000 and is currently valued at £10 million, according to the firm.

Hollyport bought the fund interest using its Secondary Opportunities IV, which raised £75 million in December 2013, surpassing its £50 million target, according to PEI data.

Fund IV was 35 percent deployed in 10 acquisitions as of September, Hollyport chief executive officer John Carter previously said.

Hollyport declined to comment. 

This article has been updated to reflect that only one investment remains in ECP.