Fund of funds manager Portfolio Advisors has acquired stakes in BC European Capital VII and Milestone Capital’s EAC III, according to UK regulatory notices.
BC European Capital VII is a 2000-vintage fund that raised €4.27 billion. Limited partners in the fund include the Pennsylvania Public School Employees’ Retirement System and the Rockefeller Foundation, according to PEI’s Research and Analytics division. The State of Wisconsin Investment Board was also an LP in the fund, but sold its stake in July to The Blackstone Group’s Strategic Partners, an existing LP.
Fund VII is nearly fully realised, having invested primarily in European buyouts.
BC Partners declined to comment.
In 2000, the fund purchased UK private hospital group General Healthcare Group for $1.9 billion, according to BC’s website. The company was sold to Netcare of South Africa for £2.35 billion ($3.77 billion, €3.04) in 2006.
In 2000, the fund also invested in US car parts company Mark IV Industries, but lost $300 million when the company was sold to Sun Capital Partners for $70 million cash in 2008.
Other portfolio companies include travel technology company Amadeus, which was acquired in 2005 and exited via an initial public offering on the Madrid Stock Exchange five years later, according to the firm’s website. BC is said to have generated a 7x return on the sale.
Fund VII was generating a net internal rate of return of 23.95 percent as of 30 June 2013, according to documents from the California State Teachers’ Retirement System, an LP in the fund.
EAC III is a 2002-vintage fund managed by lower mid-market firm Milestone. Fund III raised €224 million for investments in France, Switzerland and the UK, according to PEI’s Research and Analytics division. LPs include Allianz and Idinvest Partners.
EAC III acquired a majority stake in textile care retailer 5àSec BV, investing €25 million in the company in 2001, according to the firm’s website. The firm expanded the business by opening more than 200 shops in Europe and eventually sold the company in 2007, generating a 2.2x return.
Milestone was unavailable to comment by press time.
Portfolio Advisors acquired the stakes from Boaz Private Equity Holdings, which shares its Paris address with BNP Paribas Private Equity. Little more is known about the firm and principals did not return a request for comment by press time.
Portfolio Advisors funded the stakes using its Portfolio Advisors Secondary Fund II, which raised $910 million in 2012.
The firm did not submit a comment by press time.