Return to search

PineBridge buys stakes from Spanish family office

The stakes are in Lion Capital II, which currently has a negative internal rate of return.

PineBridge Investments, the $78 billion asset manager, has acquired two stakes in Lion Capital Fund II from Casa Grande de Cartagena, the family office of one of Spain’s wealthiest businessmen, according to two UK regulatory filings.

Lion Capital Fund II is a €2 billion consumer goods-focused buyout fund that closed in February 2008 after 12 months of fundraising, according to PEI’s Research and Analytics division.

The fund, managed by London-based Lion Capital, has exited six investments so far and holds three remaining portfolio companies – frozen food makers Findus Group and Picard, and merchandise retailer Hema – according to its website. The net internal rate of return (IRR) for the fund was negative 4.4 percent with a 0.8 x return multiple as of 30 September, according to an investor in the fund who declined to be named. Founded in 2004, Lion focuses on consumer-based investments and has €4.4 billion in assets under management, according to PEI data.

The deal closed on 30 September. It was not clear what price PineBridge paid for the stakes.

Casa Grande de Cartagena managed €681 million at the end of 2012, according to a 2013 Spanish article. The family office manages the wealth of Rafael del Pino, one of Spain’s most famous industrialists who founded building conglomerate Grupo Ferrovial. Del Pino, known as the king of bricks, became one of the country’s richest people with a net worth of $8.6 billion before he died in 2008, according to another Spanish article.

Casa Grande de Cartagena has reportedly sold off more than half of its investments since 2006, though it was not clear why the family office sold its stakes in Lion II.

New York-headquartered PineBridge bought the interests through its PineBridge Secondary Partners III vehicle, which closed short of its $500 million target on $308 million in February after 20 months of fundraising. PineBridge recently used Fund III to acquire a portfolio of mostly European buyout stakes from Nationwide Mutual Insurance, according to regulatory filings.

PineBridge, Lion and Casa Grande de Cartagena declined to comment.