Northleaf backs LBO France stapled deal – exclusive

The firm has acquired stakes in the 2010-vintage buyout fund of one of France's oldest private equity houses.

Northleaf Capital Partners has backed a stapled tender offer involving one of France’s oldest private equity firms, Secondaries Investor has learned.

The Toronto-headquartered firm acquired stakes in LBO France‘s 2010-vintage Hexagone III fund, according to two sources familiar with the matter. The deal was worth less than €50 million including secondaries stakes and the primary capital, the sources said.

The primary commitment was made to LBO France’s Small Caps Opportunities fund which has a €100 million target, it is understood.

It is unclear whether the process, which closed in August, was intermediated or not.

Hexagone III is a €154 million buyout fund that closed in 2010, according to PEI data. Limited partners who backed the vehicle include CNP Assurances and the European Investment Fund.

Northleaf used capital from its latest secondaries programme to fund the deal, one of the sources said. The firm amassed $1.3 billion, including $800 million for Northleaf Secondary Partners II, for secondaries in September.

According to advisor Hamilton Lane, 27 percent of all GP-led restructurings it has reviewed so far this year involved stapled elements. Ardian is one of the latest buyers involved in such deals, offering to commit to UK buyout firm Bridgepoint’s latest credit fund as well as acquire stakes in the firm’s 2008-flagship, as Secondaries Investor reported.

In 2015 LBO France was reported to have run a secondaries deal on two of its funds in a process advised by Evercore, allowing the firm to reshuffle its investor base.

LBO France and Northleaf declined to comment.