Triton launches €1bn-plus multi-asset continuation fund process

Triton Partners has launched a sizeable multi-asset continuation fund process on its 2013-vintage Fund IV.

The European mid-market buyout shop is seeking to carve out four assets – Assemblin, Unica, Flokk and EQOS Energie – representing €1.3 billion of net asset value, three sources told Secondaries Investor. Assemblin and Flokk are understood to have returned capital to limited partners while EQOS and Unica are unrealised.

Triton IV Continuation Fund will provide additional capital for further investment in the businesses, such as add-on acquisitions, a source said. Evercore is understood to be running the process.

Triton Fund IV closed above its €3 billion target, reaching €3.5 billion in 2013, according to PEI data. To date, the fund has returned €2.1 billion of capital to investors, Secondaries Investor understands.

LPs include CPP Investments, Pennsylvania Public School Employees’ Retirement System, Teacher Retirement System of Texas and Washington State Investment Board.

The GP is currently deploying Triton Fund V, which closed on €5.2 billion in 2018, surpassing its €4 billion target.

Triton and Evercore declined to comment.

Buyers have increasingly sought out multi-asset continuation funds as they rub up against their single-company concentration limits, Secondaries Investor has reported.

Hamilton Lane recently led on a $360 million GP-led process involving assets from L Catterton’s third Asia-focused vehicle. The secondaries buyer and other institutional investors agreed to acquire a structured minority interest in most of the 15 to 20 investments in L Catterton Asia III, Secondaries Investor reported.

Other managers with multi-asset continuation processes in market include The Jordan Company, which is looking for up to $2 billion to move two assets out of older funds.

Secondaries investors are taking a cautious approach to deployment due to valuation uncertainty, sources told Secondaries Investor. Buyers and advisers have lamented the fact that there is not enough capital to invest in all the available opportunities. With the current macroeconomic backdrop, secondaries investors are picking premium transactions to invest in off the back of 2021’s flurry of activity.

“There are limits as to how much capital is truly out there relative to the supply,” Immanuel Rubin, head of European secondaries at Campbell Lutyens, told Secondaries Investor in a recent interview. “I think the jury is a little bit out as to how this can get resolved.”