LPs say yes to Deutsche offer on Zurmont Madison – exclusive

An overwhelming majority of investors in the Swiss firm's sole fund have agreed to sell their stakes to the bank's private equity unit, Secondaries Investor has learned.

Zurmont Madison‘s attempt to restructure its sole fund has succeeded with an overwhelming majority of limited partners agreeing to sell their stakes to Deutsche Bank‘s private equity unit, Secondaries Investor has learned.

DB Private Equity had offered to buy out investors in the Swiss investor’s 2007-vintage SFr 250 million ($252 million; €229 million) Zurmont Madison Private Equity fund in a deal involving around SFr 74 million of net asset value, according to two sources familiar with the matter.

Limited partners in the fund had until 5:00 pm Central European Time on Wednesday to decide if they wanted to sell their stakes or roll over into the new vehicle, Zurmont Opportunity Fund. LPs also had the choice of investing additional capital for follow-on investments for the three assets held in Zurmont Madison Private Equity, according to the sources.

It is understood that DB Private Equity will commit as much as SFr 25 million to the new vehicle based on the percentage by volume of investors who sold. It was unclear whether any LPs committed additional capital to the newly-created vehicle.

The three assets are flooring manufacturer Bauwerk Boen, electronic engineering services firm CCS Holding and steel products company SMB, according to Zurmont’s website.

Financial News first wrote that DB Private Equity had offered to buy LPs’ stakes in the fund.

Zurmont began a process last year to restructure Zurmont Madison Private Equity fund. The firm hired Park Hill, which ran a price discovery process that involved approaching around 56 potential buyers, Secondaries Investor understands. In September, DB Private Equity offered investors par to 31 March net asset value for their stakes in the fund.

Zurmont did not return a request for comment. DB Private Equity and Park Hill declined to comment.