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Glendower buys into KIA stake sale

Kuwait Investment Authority has been offloading European private equity stakes in line with changes taking place at its London office.

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Glendower Capital has bought into a portfolio of mature European fund stakes from Kuwait Investment Authority.

The Deutsche Bank Asset Management spin-out picked up two stakes in Duke Street Capital’s sixth fund, according to UK regulatory filings. The interests were priced at a premium to net asset value, according to one source familiar with the deal.

The reference date of the pricing is unclear.

It is understood that Campbell Lutyens advised on the process.

According to another source, the sale ran in parallel to a deal in which KIA sold a raft of mature European fund stakes to Coller Capital, which used its Coller International Partners VII fund, as Secondaries Investor reported in October. Fund stakes that changed hands include the €11.2 billion Apax Europe VII and the €3 billion Doughty Hanson & Co V, both 2007 funds.

Duke Street VI is a 2006-vintage, €963 million western Europe-focused buyout fund. Remaining assets include restaurant chain Wagamama, which was considered by Glendower to be a prize asset, Secondaries Investor understands.

The Duke Street stakes were held in DS SPV No.1, a special purpose vehicles that was created for the restructuring process carried out on Duke Street VI at the beginning of this year, and feeder fund Duke Street VI No.1.

That process involved more than 25 limited partners, including KIA, Lexington Partners and Blackstone, rolling over into a new vehicle. The remainder sold their stakes to Goldman Sachs and Madrid-based Arcano Asset Management.

KIA has been selling stakes in line with a change in strategic direction and major changes being made in relation to its London office, Secondaries Investor reported in October.

KUNA, Kuwait’s state news agency, reported on 4 October that the gulf nation’s State Audit Bureau was to “intensify” the inspection of its London office, known as Kuwait Investment Office, “due to Brexit and the expected economic repercussions”.

KIA’s London-based head of alternative investments, Charles Magnay, has also departed the sovereign wealth fund, according to a source familiar with the matter. Magnay’s Linkedin page lists him as being at KIA until June.

Coller Capital, KIA, Glendower and Duke Street declined to comment.