Neuberger Berman is lead investor on a deal run by GenNx360 Capital Partners, which wants to extend its hold over its asset Precision Aviation Group, sources told affiliate title Buyouts.
The single-asset deal is among a slew of mid-market transactions that are keeping secondaries buyers busy, despite a slowdown through the year on the GP-led side of the secondaries market.
The market had about $50 billion of GP-led deal activity, including single-asset deals, in the first half, according to PJT Park Hill’s volume report. Overall deal volume clocked in at around $15 billion to $20 billion in the third quarter, according to PJT Park Hill, with more than $40 billion of new mandates launched in the quarter.
GenNx360 wants to move PAG out of Fund II and into a continuation fund for more time and capital to run the business. The firm closed Fund II on more than $535 million in 2014 and invested in PAG in 2018.
PAG, formed in 1993, provides maintenance, repair and overhaul (MRO) and supply chain services for aircraft. The company last year added on PTB Group, listed on the Australian Securities Exchange, which provides MRO services through various entities.
The deal, which could total between $400 million to $600 million, is in the election period, one of the sources said. The election period is when existing LPs decide whether to cash out of their interests in the asset or roll into the continuation fund.
It’s not clear if existing Fund II LPs have the option to roll on substantially the same terms they have in the older fund, known as the status quo option. Carmen Rojas, GenNx360’s head of investor relations, did not return a comment request this week.
While Neuberger is lead investor on the deal, it’s not clear how many other investors may be involved. Jefferies is working as adviser on the transaction.
GenNx360, formed in 2006, invests in North American mid-market industrial and business services companies. It seeks portfolio companies generating annual revenues between $50 million and $500 million, with EBITDA between $5 million and $50 million.
The firm is in market with its fourth fund, targeting $600 million, Buyouts previously reported.
The PAG process is one of several high-profile deals that appear to be getting done despite the tougher conditions. Other deals include a multi-asset process run by Leonard Green, which is looking to move four assets out of older funds and into a continuation pool; and a two-asset deal from Excellere Partners.
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