GERMANY - HarbourVest and AlpInvest complete German secondary deal

The first significant deal of its kind in Germany, this transaction provides Paragon Partners with the capacity to provide follow-on capital to the portfolio companies, and also to pursue further transactions of this type. Together, HarbourVest and AlpInvest have made initial commitments totalling EUR 47m to the Paragon Partners Secondary LP fund. The fund is advised by Paragon Partners GmbH.

'Partnering with AlpInvest, we have provided Paragon Partners with the platform to build a business focused on acquiring portfolios of direct private equity assets,' said Peter Wilson, managing director at HarbourVest. 'The participation in this transaction marks the first of its kind in Germany, and we hope to see more opportunities like this in the future.'

'Through our commitment, we have enabled Paragon to acquire an attractive portfolio of secondary direct assets, which have significant additional growth potential. The transaction provided Afinum and its investors with a tailored exit solution for a portfolio of tail-end investments,' said Volkert Doeksen, managing partner and CEO at AlpInvest Partners. 'We believe that the market for secondary direct assets is an attractive growth segment in the secondary market, and we will continue to pro-actively target this segment.'

'We are excited about the quality of the portfolio that we have acquired and are looking forward to working with management to unlock the significant value we see in all of the businesses. HarbourVest and Alpinvest have proven to be invaluable partners in this transaction. We believe that this is a milestone transaction for the German secondary direct market, paving the way for private equity firms to realize value in their portfolios efficiently', said Edin Hadzic, one of the three founding partners at Paragon.

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