Hollyport backs US tech fund restructuring

The process, which was also backed by two co-investors, centres on a 2010-vintage fund with 10 assets across software, technology and healthcare sectors.

Hollyport Capital has led a GP-led transaction involving New Jersey-based tech investor Edison Partners.

Limited partners in the 2010-vintage Edison Venture Fund VII were given the option to roll into target vehicle Edison VII or sell their holdings to the London-based secondaries buyer and two co-investors, Hollyport partner Steve Nicholls told Secondaries Investor.

The $156 million vehicle comprised 10 assets in the enterprise software, technology and healthcare sectors, he said. Fully 58 percent of LPs opted to roll their exposure over to the separate vehicle.

New Mexico Educational Retirement Board was one of the co-investors,  Secondaries Investor understands.

The process started in September last year and was put on hold due to the covid-19 crisis. It gives Edison more capital to invest in the assets, provides an exit opportunity for LPs and realigns the fund’s economics with the management team, Nicholls said.

He described the transaction as a “conviction investment” that the firm was able to “diligence and see the upside in” despite the uncertainty brought about by the crisis.

Cebile Capital advised on the deal, according to a source familiar with the matter.

Edison Venture Fund VII raised $249 million by final close in 2012 from investors such as Minnesota Mutual Life Insurance, New Jersey Division of Investment and New Mexico Educational Retirement Board, according to PEI data.

Princeton, New Jersey-headquartered Edison Partners has $1.3 billion in assets under management. Its most recent fund IX raised $365 million by final close in 2018.

Hollyport is investing its $1 billion Hollyport Secondary Opportunities Fund VII, which raised double the amount collected by its 2017-vintage Fund VI, Secondaries Investor reported at the time of final close in January.

Edison could not be reached for comment.