Stapled secondaries gaining traction; Nordic market awakes from slumber; Nordic Capital in profile… Here is your weekly round-up of essential industry news and analysis
BC Partners is nearing a stapled secondaries transaction that could see the GP raise a sizeable commitment to its latest flagship fund. Lexington Partners is understood to have agreed to buy €1.2bn of existing LP commitments in BC European Capital IX while also committing up to €600m to BC European Capital X, currently being raised with a €7bn target. Staples have become a feature of the wider GP-led secondaries process, and some observers feel the BC deal highlights how top-tier GPs can harness significant appetite on the secondaries market. "You will increasingly see these taking place for brand-name GPs, as they come to realise they can take control of secondaries transactions that would be happening anyway and using them to their advantage," says Sunaina Sinha, managing partner at placement agent Cebile Capital. Read more
It might be early days to call it a full-blown revival, but the Scandinavian buyout market certainly stirred considerably in June. Throughout the course of the month, unquote" recorded 12 buyouts reaching an aggregate value of €6.7bn – a marked uptick from the five transactions seen in May, for a total EV in the region of €617m. In fact, June was the busiest month of H1 on the buyout front. March came close with 11 deals on record (though with a much lower aggregate value), and buyout activity was lacklustre for most of Q1 and Q2: unquote" recorded only four buyouts in April, and three in January. June's activity was much more in line with the number of buyouts seen in December last year (13 deals worth a total of €1.5bn), which made the Q1 slump all the more noticeable in the region. Read more
The Nordic market still remains slanted towards local investors, as Nordic Capital partner Mark Bulmer highlighted as part of our recent in-depth profile of the Scandinavian powerhouse: "People call it 'fortress Nordic' because the community is very tightly knit and it all comes down to trust. Three quarters of business deals are done by Nordic-headquartered sponsors because people like to know that, if something goes wrong, the guy in charge is just down the road." Indeed, since the sponsor began life as Nordic Capital in 1989 as a small family business, the lion's share of its 90 portfolio companies have been in the Nordic countries. Only 15 have been headquartered outside the region. Read more
That's all for this week's round-up – don't forget to check unquote.com for more in-depth news and analysis.
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GP makes fifth investment from the €160m Pechel Industries IV vehicle
Deal is the fourth acquisition in 2017 for the GP's €323.5m second vehicle, Ambienta Fund II
New vehicle follows from Phoenix Equity Partners 2010, which closed in June 2010 on £450m
TCR Capital sells its majority stake to IDI and family office Groupe Chevrillon