ICG strikes $170m distressed deal – exclusive

Intermediate Capital Group has purchased a portfolio of private equity and debt investments for around $170 million from a liquidated debt fund, Secondaries Investor has learned.

The London-headquartered asset manager acquired the equity and debt in five companies from Third Avenue Focused Credit Fund, and is now the largest shareholder in two of those companies – Corporate Risk Holdings and Affinion Group, according to a source familiar with the matter.

Houlihan Lokey advised on the transaction.

Corporate Risk Holdings is a New York-based intelligence and security firm, previously known as Altegrity, which was acquired by Providence Equity Partners in 2007 for $1.5 billion from Welsh, Carson, Anderson & Stowe and The Carlyle Group. At the time it was called US Investigations Services. The company, which vetted the US whistle-blower Edward Snowden, acquired rival group Kroll in 2010 for $1.1 billion and filed for bankruptcy in 2015.

Affinion Group, a US-based marketing company, was previously owned by Apollo Management and General Atlantic. The private equity firms acquired the company in 2005 for $1.8 billion, with Apollo as the majority owner. Apollo handed control to Affinion’s lenders in 2015 after twice failing to float the business.

Third Avenue Focused Credit Fund invested in the equity and high-yield debt of distressed companies and is managed by New York-headquartered mutual fund manager Third Avenue Management.

ICG is understood to have struck the deal from its ICG Strategic Secondaries Fund II, which closed on just over $1 billion at the end of March, as Secondaries Investor reported.

ICG launched its secondaries platform at the end of 2014, hiring a specialist team from NewGlobe Capital after it partnered with NewGlobe and Goldman Sachs on the $860 million restructuring of US private equity fund Diamond Castle IV.

ICG declined to comment.