Investcorp, a Bahrain-based alternative investment manager, has signed an agreement with London-headquartered Coller Capital for several of its European private equity portfolio assets that will help to create a new $1bn buyout fund.
As per the transaction terms, Coller Capital through its current fund – Coller International Partners VII will underwrite a new fund arrangement with Investcorp.
Involved in the transaction are six assets from the Bahraini company’s European private equity portfolio, subject to regulatory approval and other closing conditions.
The alternative investment manager will retain a continued interest in the portfolio via a meaningful GP commitment to the fund.
Also included in the transaction is fresh capital for any follow-on investments, investments in the future and co-investments.
Coller Capital CIO Jeremy Coller said: “This transaction springs from a relationship of many years’ standing. It is a complex investment, of strategic importance to Investcorp, and we’re delighted to be their chosen partner.”
Investcorp said that its European private equity team will manage the two assets acquired through the secondary transaction and the fund’s new capital. The company revealed that it continues to make investments in mid-market buyout transactions in Europe.
It expects the transaction with Coller Capital to offer relevant existing investors with immediate liquidity for some of their exposures. Investcorp also expects the transaction to give it scope to seek to further create value via active management and additional capital that is being made available under it.
Investcorp executive chairman Mohammed Alardhi said: “The signing of this landmark transaction in the secondary private equity market is the latest step in our global growth strategy.
“It demonstrates the continued desire by institutional investors to back Investcorp’s investment platform. We look forward, at closing, to welcoming Coller Capital to the distinguished list of global institutions who partner with us and to working with them in the coming years to maximise the value of the portfolio.”
The transaction follows Investcorp’s acquisition in 2017 of Investcorp Credit Management, a $11bn AUM credit management business, and a minority investment in 2018 in Swiss private bank Banque Paris Bertrand.