
Easter sees double secondaries deals

The Easter weekend has seen major developments in the secondaries market, with both HarbourVest and Eurazeo attempting to expand their presence through acquisitions. John Bakie reports
Eurazeo confirmed this morning that it has reached an agreement to buy OFI Private Equity Capital in a share swap, acquiring a substantial portfolio of SMEs and an experienced management team. The deal values OFI at €132m.
The news of Eurazeo's expansion comes as HarbourVest makes a public offer to buy Switzerland-based Absolute Private Equity, in a deal worth over $750m. The acquisition is to be made with capital from HarbourVest's $2.9bn secondary fund, Dover Street VII LP.
Eurazeo, normally active in deals at the upper end of the market, has today gained substantial exposure to deals in the small and mid-cap segment by acquiring OFI. Rather than create its own team to focus on this area of the market, Eurazeo has opted to buy in the expertise of an existing team and its portfolio of companies.
Patrick Sayer, CEO of Eurazeo, says: "The SME segment in which OFI Private Equity is active is very attractive for Eurazeo in terms of transaction potential and recurrent capital gains."
OFI will continue to act as an autonomous subsidiary, allowing the management team to fully concentrate on searching for new SME investments while monitoring existing ones. The firm also plans to leverage Eurazeo's experience and network to open up new investment opportunities. Existing shareholders in OFI will swap their shares for new Eurazeo shares as part of the deal.
By contrast, HarbourVest has completed a more traditional secondaries transaction, offering investors in Absolute's fund-of-funds the chance to exit their investment for cash.
HarbourVest says it has been working closely with Absolute's board, which has recommended its shareholders to accept the offer, valuing the firm at $752m with 100% acceptance.
John Toomey, managing director of HarbourVest Partners, says the acquisition of Absolute gives the firm exposure to a portfolio of high-quality global private equity assets.
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater