Blackstone Group’s secondaries arm Strategic Partners has purchased a portfolio of tail-end fund stakes from Bank of America, according to multiple sources familiar with the matter.
The portfolio is considered “very large”, according to one source who declined to disclose the number of fund positions. Most of funds are from Western Europe and the US, he noted.
Strategic Partners declined to comment.
It’s unclear how much the firm paid for the portfolio but according to one source, portfolios of tail-end funds typically sell for a 15 percent to 25 percent discount to the portfolio’s net asset value.
Known funds in the portfolio include Amadeus II, EQT III, the Third Cinven Fund and Indigo Capital Partners’ European Mezzanine Partners III, according to UK regulatory notices.
Amadeus II is a 2000-vintage venture capital fund managed by Amadeus Capital Partners, based in Cambridge, UK. The fund raised $335 million for venture capital and growth equity investments in Western Europe. Investments included fibre optics company Southampton Photonics, which the firm sold several years ago. The fund only has a handful of assets left now. Amadeus declined to comment.
EQT III is a 2001-vintage €2 billion fund. Remaining investments include facility services company ISS and paper manufacturer Munksjö Oyj, EQT’s website disclosed. Both investments were made in 2005.
The Third Cinven Fund closed on €4.4 billion in 2002. Cinven invested in Dutch home improvement chain Maxeda alongside Kohlberg Kravis Roberts and Permira Advisers in 2004. The trio has reportedly been exploring options to sell the company but may refinance it instead, after receiving offers below expectations.
European Mezzanine III raised €250 million in 1999 and provided mezzanine capital to 17 medium-sized businesses. German manufacturing company RT Recycling is the fund’s only remaining investment. Fund manager Indigo is no longer raising new funds.
Strategic Partners purchased the portfolio using its $2.9 billion Fund V, according to UK regulatory notices. The firm closed its sixth secondaries fund – its first under the Blackstone name – on $4.4 billion earlier this month.