Deals

Spring Bridge, Hollyport back Brentwood restructuring

The GP-led specialists have led the formation of Brentwood Associates Opportunity Fund with assets from the managers’ two previous vehicles.

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Spring Bridge Partners has led a fund restructuring of legacy assets owned by Los Angeles-based private equity firm Brentwood Associates.

The secondaries firm, which was founded by ex-Coller Capital executives Sebastian Burdel and Luca Salvato, was joined by Hollyport Capital and other institutional investors in structuring the $190 million Brentwood Associates Opportunity Fund, according to a statement.

The transaction resulted in the purchase of select assets from Brentwood’s two prior vehicles –  Brentwood Associates Private Equity VI, a $1.15 billion 2016 vintage fund, and Brentwood Associates Private Equity IV, a $440 million 2006 vintage fund, both focused on consumer goods – that have been held and continue to perform, providing liquidity to existing limited partners, allowing management to continue to realize future growth.

The restructuring provides a liquidity option to limited partners who “patiently supported the growth and development of these portfolio companies”, Bill Barnum, partner at Brentwood, said in the statement.

This deal was “square in the middle of the fairway for us”, said Salvato, who indicated the GP-led focused firm’s sweet spot is between $100 million and $200 million.

Discussions for the deal, which closed in April, started at the end of last year – around when the pricing was determined. The transaction found “a fair price” that left all parties satisfied, according to Salvato.

The $190 million figure includes net asset value plus unfunded commitments as well as follow-on capital, and the vast majority of the capital was used to purchase the assets and provide liquidity to LPs, according to Salvato.

Spring Bridge completed Longshore Capital’s spin-out from LaSalle Capital last August, and is in the market with their first fund, which launched in 2019, seeking a target of $500 million, according to Secondaries Investor data.

London-based Hollyport, which focuses on the acquisition of tail-end assets, is investing out its seventh fund. The firm made a rare high-level promotion last month – its first since 2013.

PJT Partners served as exclusive financial advisor, and Kirkland & Ellis served as legal advisor to Brentwood. Kirkland & Ellis also advised Spring Bridge Partners.

–This story has been updated to reflect the assets came from Brentwood’s sixth and fourth funds, not sixth and fifth.