Newbury buys Palamon stakes

The deal involves the London firm's latest buyout fund which was part-raised by a 2015 stapled deal involving a group of buyers led by Goldman Sachs.

Newbury Partners has bought stakes in two recent Palamon Capital Partners funds from the general partner itself.

The Connecticut-based secondaries firm tapped its 2013-vintage Newbury Equity Partners III fund to acquire two partial stakes in Palamon European Equity IV and another two partial stakes in Palamon Auxiliary Partnership 2013, according to separate UK regulatory filings.

Palamon IV is the London-headquartered firm’s 2016-vintage flagship buyout fund that is in the process of being raised, while Auxiliary Partnership 2013 is a €210 million vehicle that invests alongside Palamon IV.

Newbury acquired both pairs of stakes in June and July from Palamon Capital Partners LLP, the filings show.

Palamon IV made its fifth investment in January and closed in June on €402 million, above its €400 million target, Secondaries Investor has learned. The firm had used a 2015 stapled deal to help boost fundraising for the vehicle, Secondaries Investor reported. In that deal, a group of investors including Goldman Sachs AIMS Private Equity Group and Morgan Stanley Alternative Investment Partners agreed to purchase stakes in the 1999-vintage Palamon European Equity and 2006-vintage Palamon European Equity II, as well as committing to Palamon IV.

Palamon IV and Auxiliary Partnership 2013 have changed names since the Newbury deals; Palamon IV became Palamon European Equity III and Auxiliary Partnership 2013 became Palamon European Equity III ‘A’, according to filings with the UK’s Companies House on 15 August.

Newbury Equity Partners III is a $1.1 billion vehicle that invests in small- and mid-market secondaries, according to PEI data.

Palamon Capital Partners did not return requests for comment. Newbury Partners declined to comment.