Electra Partners has acquired a portfolio of five private equity funds interests from an unnamed bank for £56 million (€65 million, $87 million).
The portfolio was acquired at a discount to net asset value and it is expected to generate “strong cash distributions” over the next years, according to a statement. Additionally, a further £21 million will be invested from cash flow. Electra is likely to invest a total of £65 million, as it plans to spend an additional £9 million on a sixth fund by the end of this month, though it’s not clear if that sixth fund will be from the same bank.
At press time, Electra Partners was unavailable to comment on the statement.
“Five of Electra’s last six investments have been bank related assets. We see continued strong deal flow in this area. The portfolio we have acquired is an example of Electra using its flexibility to seek the best risk-reward balance within the private equity market with the purchase price representing a discount to the valuation of underlying assets,” Alex Fortescue, chief investment partner at Electra Partners, said in the statement.
This is the second investment Electra has agreed this year. Last week Electra revealed a £160 million deal for assets from the data services division of media and marketing services business UBM.
In September 2012, Electra acquired a portfolio of second line and mezzanine debt positions in five UK and European companies for £30 million from an international bank. In January, the firm acquired £45.5 million in term debt facilities from Lloyds Banking Group in caravan parks operator Park Resorts.