Obligo extends life of fund-of-funds

Paul Tilt
14 June 2019

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Oslo and Stockholm-based asset manager Obligo has extended the life of its Global Private Equity I fund to 2022.

The decision was made following LP approval of a three-year extension at the fund's general meeting held on 12 June.

Global Private Equity I is a 2007-vintage NOK 1.8bn fund that is invested in a portfolio of nine mid-market buyout funds, including EQT V, IK 2007 and Norvestor V.

The portfolio has 59% exposure to Europe, 29% North America and 12% the rest of world.

The fund manager exercised a two-year extension period upon the fund's original maturity in 2017.

According to Obligo, a further extension to July 2022 was recommended, as their forecasts expected that 90% of the remaining fund value would be realised in the next 10 quarters.

In addition, a secondary sale of the portfolio this year risked selling at a discounted price to NAV, compared to realisations within the fund over the coming years at an expected premium.

Obligo did not rule out a secondary sale of its tail portfolio following the realisation of the majority of its portfolio.

In 2017, the manager completed a 60.3% sale of LP interests in its infrastructure fund-of-funds to Blackstone's Strategic Partners Fund Solutions. That deal priced at 99.5% of the transaction's September 2016 reference NAV.

Global Private Equity I had a 1.67x TVPI and 0.85x DPI at 31 March 2019.