Deutsche picks up tail-end portfolio from GIC

The Kuwait-based investment company came to market with a portfolio of mainly buyout stakes.

Deutsche Bank’s secondaries unit has acquired a portfolio of mainly buyout stakes from Gulf Investment Corporation (GIC) as the Kuwait-based investment company winds up some of its mature interests, Secondaries Investor has learned.

GIC came to market with the interests in the second half of last year, according to two sources familiar with the deal. The deal was ultimately worth around $50 million with DB Private Equity, the alternative asset manager of Deutsche Asset & Wealth Management, acquiring interests in a global mix of 18 US, European and Asian funds.

DB Private Equity tapped its latest $1.7 billion DB Secondary Opportunities Fund III to purchase the stakes, with Credit Suisse advising on the deal.

At least three of the 18 stakes in the deal were in Bridgepoint, Charterhouse Capital Partners and SL Capital Partners-managed funds, it is understood.

Bridgepoint Europe III closed on €2.5 billion in July 2005, according to PEI Research and Analytics. The fund had a net internal rate of return (IRR) of 2.3 percent as of 30 June, according to a performance report by the California Public Employees’ Retirement System. The fund’s return multiple was 1.4 x as of 31 December.

Charterhouse Capital Partners VII is a 2003-vintage €2.7 billion vehicle. The fund had a 43 percent net IRR and a 2.2x return multiple as of 30 September, according to a source.

European Strategic Partners 2006, managed by Edinburgh-based SL Capital, is a €900 million fund of funds that had a 4.6 net IRR and a 1.2x internal return multiple as of 30 June, according to a performance document from the West Yorkshire Pension fund.

It was not clear how many assets are left in these three funds.

GIC is owned by the six member states of the Gulf Cooperation Council: Bahrain, Oman, Qatar, Saudi Arabia, the United Arab Emirates and Kuwait. The firm, which was established in 1983 to foster economic growth, has seen its total assets almost halve in the last decade, with $5.1 billion in 2015 compared with $9.2 billion in 2007, according to its annual reports.

GIC, SL Capital and Charterhouse did not return requests for comment. DB Private Equity, Credit Suisse and Bridgepoint declined to comment.