GMT Communications Partners, a media and telecoms-focused buyout firm, is close to a restructuring deal for its 2000-vintage €365 million Fund II, after four months of talks with LPs, according to six sources familiar with the matter.
There are between 20 and 30 LPs in the fund, according to one source. Those LPs include Harbourvest and Lexington Partners, among others, according to PEI data.
The fund’s advisory board, consisting of Pinebridge Investments, Partners Group and Grosvenor Capital Management (previously Credit Suisse’s asset management business), has been reviewing potential conflicts of interest raised in the deal.
Typically, fund restructuring deals involve some type of carry and management fee re-set.
GMT’s Fund II invested in ten companies, three of which remain in the portfolio, according to one of the sources.
GMT, Pinebridge and Partners declined to comment, while Grosvenor could not be reached for comment at press time. GMT refused a request for information on the fund’s current NAV as part of its company policy.
Secondaries Investor understands that once Fund II has been restructured, GMT means to focus on fundraising for its Fund IV, for which it launched marketing in 2013, according to PEI data. It aims to raise $400 million.
GMT closed its Fund III on €342 million in 2006; LPs in the fund included the European Investment Fund, Newbury Partners and BVT Unternehmensgruppe.
GMT focuses on development capital and buyout opportunities and TMT sectors, typically investing up to €500 million per deal.
[hr] extra reporting by James Regan