Madrid-based N+1, one of Spain’s oldest private equity firms, agreed to sell about 71 percent of a portfolio of stakes in five companies for €57 million to Access. N+1 Private Equity Fund II, in which Access was an existing investor, originally invested in the companies alongside private equity firm Dinamia. Dinamia and N+1 then merged in July.
“N+1’s private equity unit will continue to manage the portfolio, which will therefore continue to generate fee income for the Group,” the statement said.
The deal closely resembles a staple deal as Access has bought out a portfolio of companies in an existing fund and also committed to the new N+1 Private Equity Fund III.
N+1 had attempted to boost fundraising for N+1 Private Equity Fund III through a staple deal that began in May. The deal fell through around August because not enough existing investors in the firm’s funds decided to sell their stakes, Secondaries Investor reported in September.
N+1 Private Equity Fund III is looking to raise €450 million and has attracted €100 million from the Centre for the Development of Industrial Technology, Spain’s business financing agency. It also has up to €50 million from N+1 itself as well as some additional commitments from existing investors, according to sources. Access’s new investment brings the total capital commitments for N+1 Private Equity Fund III to at least €185 million.
The sale of the assets to Access is subject to N+1 shareholder approval, according to the statement.
N+1 will receive payment for the assets in three stages including €40 million upon completion, €10.7 million in 2016 and the remaining €6.5 million the following year.
The portfolio is made of stakes in orthopaedic products distributor MBA, audiovisual service and television content provider Secuoya, telecommunications systems maker Tryo, furniture component manufacturer Probos and electronic lockmaker Salto.
Founded in 1999, Access Capital Partners is a fund of funds manager with offices in Paris, Brussels, Helsinki, Munich and London. The firm has €5.9 billion in assets under management, according to PEI’s Research & Analytics division.
N+1 is an investment banking and asset management firm that specialises in providing mid-market value-added products and services and has offices in seven countries, according to its website. Its asset management unit advises on and manages six asset classes with over €3 billion in assets under management. Its private equity business sits within its asset management business.
Access did not immediately return requests for comment.