GP Investments, a Brazilian private equity firm, has acquired a majority holding in listed fund of funds Spice Private Equity in a bid to refocus the Swiss vehicle toward co-investments.
São Paulo-based GP increased its stake in Spice, agreeing to acquire the shares currently held by vehicles managed by Fortress Investment Group and Newbury Associates, according to a statement. GP will pay $35.25 a share, which represents a 15 percent discount to Spice’s 31 March net asset value.
When the deal closes, which is expected after 28 June, GP will indirectly hold 58.5 percent of the shares and voting rights of Spice.
“With the acquisition, GP intends to use its expertise in Latin America and abroad to turn Spice into a dedicated co-investment vehicle focused on large direct investment opportunities and potential fund investments through both primary and secondary transactions that are structured by GP and affiliates,” GP said in a statement, adding it would also propose new board directors.
Spice said board of directors chair Eduardo Leemann and board member David Pinkerton would not stand for re-election and their terms of office would end on 28 June.
The firm, which is listed on the SIX Swiss Exchange, became partly owned by GP, Fortress and Newbury after a refinancing in 2013 when it switched investment focus to concentrate on co-investments and secondaries private equity opportunities in emerging markets.
Since then, Spice has made several investments in Latin America, including purchasing stakes in at least two funds managed by GP and interests in funds managed by Argentina’s Victoria Capital Partners.