ICG confirms PineBridge spin-out restructuring

Secondaries Investor reported in July the deal to restructure the €523m New Europe Partners II fund had closed.

ICG has confirmed it closed a deal to restructure a 2006-vintage Central and Eastern Europe-focused fund, two months after Secondaries Investor reported the transaction had been completed.

ForeVest Capital Partners moved four assets held in PineBridge New Europe Partners II into a new vehicle backed by ICG’s strategic equity group, according to a statement. ForeVest span out of PineBridge Investments in 2016 to focus on growth equity investments in mid-market companies across the CEE region.

“The ForeVest team has increased their economic participation alongside ICG, and has been realigned to drive upside,” Ricardo Lombardi, managing director at ICG, said in the statement. “The portfolio companies now have a clear, newly extended investment horizon, and capital available for strategic opportunities.”

It is understood the transaction resets carried interest and other incentives for ForeVest, which has doubled its GP commitment to the assets through the deal.

ICG has become the largest investor in the new vehicle, according to the statement. New and existing LPs have provided capital to grow the portfolio.

Secondaries Investor reported in July that the deal, which involved moving €218 million-worth of assets from New Europe Partners II into a four-year continuation vehicle, had closed. By value, more than 85 percent of limited partners in NEP II approved the deal and 70 percent of LPs in total decided to sell their stakes, a source familiar with the deal told Secondaries Investor at the time.

The PineBridge team, which formed ForeVest, had attempted to restructure the fund in 2015, according to a report by Financial News at the time.

Park Hill advised on the process which closed on 13 July, the statement noted.