Doughty Hanson offers fund sell-downs

According to a source with knowledge of the situation, Doughty is offering investors in its 2004 and 2007 vehicles the option to sell down their holdings if they wish. The mechanism entails that buyers of those stakes will commit to Doughty's latest fund, which is reportedly targeting €2bn.

It is understood that few investors have taken up the offer, preferring instead to keep their holdings in both funds.

Fund-of funds manager HarbourVest, an investor in Doughty since its maiden vehicle, has acquired €215m of stakes through the stapled secondary deals, representing two LP holdings. The transaction sees HarbourVest committing to Doughty's latest vehicle.

The innovative offering marks an emerging trend in the secondaries and fundraising markets, with GPs increasingly looking to play an active role in secondaries transactions. unquote" looked at this development in depth last year and found that GPs raising new vehicles are increasingly altering terms and conditions of their fund documents to reflect this trend.

Speaking to unquote" in July, King & Wood Mallesons partner Warren Allan said: "While the terms of older funds restricted direct transfers of title to interests in the fund vehicle, GPs reacted to an evolving secondaries market and the use of varying transaction structures by broadening the scope of transfer restrictions. In essence, the change was a tool to retain control over their investor base."

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• Topics
• Fundraising
• Buyout
• Secondaries
• Doughty Hanson & Co