Georgian closes $1.1bn GP-led, preps reinvestment fund launch

The Canadian growth investor is raising a fund to reinvest in its best assets, having used a GP-led deal to buy out select LPs and co-investors.

Georgian Partners is pursuing a different way to hold on to its best assets, soon after closing one of the largest GP-led deals in the growth equity space.

The Toronto-headquartered manager is raising a blindpool fund to reinvest in assets that prove to be “winners”, with fundraising to launch within months, according to two sources with knowledge of the plans. The assets have not been pre-identified, Secondaries Investor understands.

The target and precise strategy of Georgian’s fund are not clear. It did not respond to a request for comment.

In early June TA Associates hit the $1.5 billion hard-cap on TA Select Opportunities Fund II, which invests in portfolio companies being sold by its flagship vehicle. TA’s main fund takes a minority stake in the business it is offloading, with the Select Opportunities Fund co-investing alongside the new third-party investor, Secondaries Investor reported.

In March, Secondaries Investor reported that Insight Partners was raising $1.25 billion to make primary and secondaries investments in portfolio companies held by 2017-vintage Insight Venture Partners X. “Many Fund X investments are presenting attractive follow-on investment opportunities beyond Fund X’s capacity,” Insight wrote in a letter to limited partners.

Last month, Georgian Partners closed a GP-led restructuring which involved four assets being moved out of various vehicles into a continuation fund. The deal came to $1.1 billion in size, including follow-on capital, Secondaries Investor understands.

Alongside selling LPs, several co-investors used the process to cash out to a consortium of Canada Pension Plan Investment Board, StepStone Group and Northleaf Capital, allowing Georgian to increase its exposure to the assets.

Affiliate title Buyouts first reported in March that Georgian was working with Campbell Lutyens on ways to get more time and capital for the portfolio.

The investments were edtech platform Tophatmonocle; data management business Tealium Inc; artificial intelligence-driven workflow management company WorkFusion; and stock exchange IEX Group Inc, according to a report from Canada’s The Globe & Mail.

The 2019-vintage Georgian Partners Growth Fund V raised $850 million against a target of $750 million, according to PEI data. LPs include Connecticut Retirement Plans and Trust Funds and Massachusetts Pension Reserves Investment Management Board, each committing $75 million.