News & Analysis

Paul Capital stops search for buyer

The mid-market fund of funds will manage out its existing assets and reportedly return commitments made to Fund X.

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Mid-market fund of funds Paul Capital has ended its six-month search for a buyer, according to two sources with knowledge of the situation.

The decision means Paul Capital will become a ‘closed-doors’ firm and will manage out its existing funds until they are fully realised, said the sources. Those funds include its Fund IX, which raised $1.65 billion in 2008. It was unclear at press time how many assets remained in Fund IX.

The firm will return commitments to Fund X, according to a report in the Wall Street Journal. Paul Capital’s Fund X struggled to make headway last year, raising only $145 million towards its $2 billion target, according to PEI Research & Analytics.

Paul Capital did not respond to requests for comment.

Secondaries Investor previously reported that Hamilton Lane had pulled out of talks to buy the 23-year-old Paul Capital. Advisory group Colchester Partners had been working with the firm on a possible sale.Colchester Partners declined to comment.Primary and co-investment vehicles Paul Capital Investors II, III are still invested, with original fund sizes of $950 million and $620 million.

Secondaries funds Paul Capital Partners VII, VIII and  IX are still invested, with original fund targets of $1.65 billion, $808 million and $950 million according to PEI data.

It was unknown at press time what portion of the funds are still left to be managed.

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Additional reporting by Yolanda Bobeldijk