Deals

Vision Capital buys Paragon portfolio

German secondaries firm Paragon Partners has sold the remaining three companies from its 2006 fund as it works to raise a new fund.

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UK-based Vision Capital has acquired a portfolio of three remaining companies from Paragon Partners’ 2005 Secondary Partners fund. UK industrial management and holding company Rubicon Partners partnered with Vision on the acquisition.

“All of these are solid companies with growth potential that they were unable to realise in an old private equity fund,” Vision Capital President Julian Mash said to Private Equity International.

Vision Capital’s first German acquisition includes paint-stripping services company ABL Technic as well power generator and metal stamping firm Metallwarenfabrik Gemmingen. Swisshaus, a Swiss specialist architect and general contracting firm, was also included in the portfolio.

Paragon, founded in Munich in 2004, invested primarily in mid-market German companies with its Secondary fund. Sources close to the deal said that Paragon is currently fundraising.

Mash declined to disclose the amount paid for the portfolio, saying only that the aggregate revenue of the three companies exceeded €200 million in 2010.

The German firm acquired Swisshaus as part of its original portfolio in 2006, sources said. ABL was added in 2007 and Metallwarenfabrik Gemmingen in 2008, sources said.

A representative from Paragon could not be contacted at press time.