Deals

Neuberger in Wind Point GP-led close – exclusive

Investors in a 2006-vintage, $715m US mid-market buyout fund were given the option to sell or roll over into a five-year continuation vehicle.

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Wind Point Partners, a US mid-market private equity firm with $1.96 billion under management, has wrapped up a GP-led process on its 2006-vintage fund.

The deal involved the two remaining assets in Wind Point Partners VI, a $715 million buyout fund, being moved into a continuation vehicle, according to a statement from Neuberger Berman, which backed the deal. Limited partners were given the option to sell their stakes or roll over. The remaining assets are railway construction and maintenance firm RailWorks Corporation and chemicals producer Ascensus Specialities.

“We are confident that with the benefit of extended duration and additional capital availability, these two companies and their management teams will have the opportunity to reach their full potential and create significant additional value over the next few years,” said Alex Washington, managing director of Wind Point Partners, in the statement.

Park Hill advised on the transaction.

Kirkland & Ellis advised both Wind Point and Neuberger Berman, according to a statement by the law firm. A team led by investment fund partners Michael Belsley and John Muno advised Wind Point, while a team led by Sean Hill and John Kelley advised Neuberger.

Continuation vehicle Wind Point Partners CV1 is around $200 million in size and has a life of five years, according to an investor source with knowledge of the deal. More than two-thirds of LPs opted to sell, Secondaries Investor understands.

Wind Point Partners VI closed above its $500 million target in August 2005, according to PEI data. Original investors include Alaska Permanent Fund, Michigan Department of Treasury and Ontario Teachers’ Pension Plan.

Neuberger Berman hit a $2.5 billion final close on its fourth dedicated secondaries fund in January 2017. The fund is global in scope and seeks to acquire stakes in private equity funds, direct investments, co-investments and structured private equity through its network of GP and LP relationships, managing director Brian Talbot said at the time.