Zurmont Madison leads fund restructuring, launches new vehicle

As part of the secondary fund restructuring, the GP offered its LPs either the opportunity to cash out their interest or roll over their commitments to the new vehicle.

According to a statement, the restructuring was led by the GP's general partner and advised by Park Hill, which also led the auction process for the portfolio companies to ensure a market price for exiting LPs.

Alongside the secondary transaction, Zurmont's management team will ally with Swiss investor Patrimonium Asset Management and establish a new GP, Patrimonium Private Equity Advisors (PPEA), which will manage the new vehicle. Following the merger, Zurmont's founding partner Werner Schnorf will be nominated as managing director at PPEA.

PPEA is expected to launch a new private-equity-dedicated vehicle, Patrimonium Private Equity, for mid-cap companies headquartered in the DACH region, unquote" understands.

Investors
According to a source close to the situation, 40% of the LPs took the roll-over option and committed to the new fund. Moreover, funds managed by DB Private Equity, the private equity investment arm of Deutsche Asset Management, provided additional capital.

The GP's partners also committed capital to the vehicle.

Investments
The new vehicle is based in Jersey and has raised CHF 100m of commitments to date, which includes follow-on capital to be deployed for the portfolio companies.

The fund targets companies with an annual turnover ranging between €25-300m with a positive cash-debt ratio, and headquartered in the DACH region, as well as in northern Italy.

The GP targets transactions within the €10-75m EV bracket and considers a seven-to-nine-year holding period. Moreover, the vehicle will operate with fees understood to be more competitive with regards to its predecessor, says the source.

Currently, the fund has four portfolio companies: wooden parquet flooring manufacturer Bauwerk Boen, acquired in 2009; household appliance electronics producer CCS Group Holding, purchased in 2011; medical implants manufacturer SMB Medical, bought in 2008; and steel products forger SMB, also acquired in 2008.

People
Zurmont Madison Management – Werner Schnorf (founding partner).
Patrimonium Asset Management – Christoph Syz (founding partner).

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