Private equity manager and advisory firm Hamilton Lane has pulled out of a possible takeover of fund of funds and secondaries specialist Paul Capital, according to a source familiar with the talks.
The negotiations’ collapse, first reported by PE Hub, leaves 23-year-old Paul Capital with an uncertain future. Advisory group Colchester Partners has been working with the firm on a possible sale.
Paul Capital’s Fund X struggled to make headway last year, raising only $145 million towards its $2 billion target, according to PEI Research & Analytics.
Several key staff also left: Paul Capital’s head of investor relations Joshua Glaser, partner Bryon Sheets, business development manager Anna Pearce and principal Richard Chow all departed last year. In January this year, Paul Capital executive Todd Miller left to join W Capital as a managing director, focusing on sourcing and developing direct secondaries investments.
The firm’s pharmaceutical royalties team also left in June 2013 to join hedge fund Visium Asset Management.
Paul Capital did not respond to requests for comment.