Pamplona to liquidate LetterOne-backed funds, to sell LP stakes in cut-off process

The transfer of LP interest on the first portfolio company was approved on 24 March, the GP said in a statement, with another to come today (25 March).

Unwinding LetterOne's participation could take place via processes including the sale of LP interests to third parties, as well as through the sale of direct investments, according to the same statement.

Although LetterOne itself is not a sanctioned entity, the Luxembourg-headquartered investment vehicle is backed by Russian oligarchs including Mikhail Fridman, Petr Aven and German Khan, who are subject to sanctions in the UK and EU following Russia's invasion of Ukraine in February. Fridman and Khan, who were two of the firm's largest shareholders, have stepped down from the company.

According to a Financial Times report today (25 March), LetterOne accounts for at least 80% of the commitments in Pamplona's funds. The publication further reported that both Goldman Sachs and Kirkland & Ellis have now halted business with Pamplona, citing two sources familiar with the situation to confirm this. Fund governance and regulation management firm Waystone (which is backed by Hg and Montagu following a USD 1.3bn SBO from MML Capital Partners) halted its business with the firm on 4 March.

Pamplona announced earlier in March that it was to redeem the LP interests of LetterOne after EU sanctions were placed on the LP's Russian backers, as reported.

Pamplona has operations in New York, London, Madrid, and Malta. The GP was founded in 2004 by Alex Knaster, who became CEO of Russia-headquartered Alfa Bank following Russia's economic crisis in the late 1990s. Alfa Bank was founded by Fridman in 1990.

The GP focuses on companies in Europe and North America, managing private equity and TMT-focused strategies. According to Unquote Data, the GP's most recent fundraise was for Pamplona Capital Partners V, which held a final close in July 2017 on EUR 3bn.

Pamplona declined to comment.

European portfolio of Pamplona Capital Management

Source: Unquote Data

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• GPs
• LPs
• UK / Ireland
• CEE
• Pamplona Capital Management
• United Kingdom
• Russia
• Secondaries
• LP interest secondary