Accretive Exit Capital Partners has acquired “meaningful minority positions” in five companies from Evercore Capital Partners II. The deal was valued at $110 million.
Accretive Exit Capital Partners LLC (AEC), a private equity firm based in Boston and West Palm Beach with $125MM under management, has announced the closing of its initial transaction in which Accretive Exit Capital Partners I L.P. (AECP I) has purchased meaningful minority positions in five companies from a premier private equity portfolio, Evercore Capital Partners II L.P., for $110MM. Accretive Exit Capital is a liquidity producing secondary direct investment firm, whose disciplined investment strategy targets a diversified pool of late-stage growth companies from vintage 1999-2003 buyout funds.
“The underlying companies must adhere to stringent requirements, including but not limited to “less than 2.5 times net-debt-to-EBITDA ratio, a minimum of $5MM in free cash flow and four consecutive quarters of double digit earnings growth,” explains Andrew Reilly, the AEC Managing Director responsible for origination and sourcing deal flow.
“Purchasing meaningful positions in a diversified portfolio of high quality growth assets comprises our core business strategy. Realizing accretive returns for existing co-investors and helping GPs deliver accretive liquidity to their LPs are added benefits from collaborating with us” said Edwin Wang, Senior Managing Director of AEC. This deal marks the first of many similar transactions that AEC expects to complete and fund.
“Liquidity in its conventional forms has all but dried up. Our timely value proposition delivers a competitive valuation and an expedient liquidity alternative for Funds that choose to de-leverage, right-size, realign resources, realize returns or partially exit high quality assets. Our experience lends itself to helping GPs monetize their unrealized gains, lever the exit multiple and thereby drive up IRRs,” added Theodore Tedeschi, a Managing Director of AEC.
The firm will continue to approach high quality private equity asset managers in the buyout sector to purchase meaningful minority stakes in their highest quality assets and anticipates follow-on transactions in the near term. Established in 1996, Evercore Partners is a leading investment banking boutique providing advisory services to prominent multinational corporations on significant mergers, acquisitions, divestitures, restructurings and other strategic corporate transactions. Evercore also has a successful investment management business whose private equity arm makes value-oriented private equity investments in middle-market businesses.
Accretive Exit Capital Partners I L.P. Acquires Portfolio
Interests from Evercore Capital Partners II L.P.
AECP I purchased stakes in Davis Petroleum (oil and gas exploration and production), Diagnostic Imaging Group (radiological diagnostic imaging centers), Test Equity (distributor of bench-top test and measurement equipment), Mr. Bult's, Inc (the nation's largest long-haul transporter of municipal solid waste) and alliantgroup (provider of high-value tax consulting services to small and mid-sized businesses). For more information please contact Andrew Reilly at 617-217-2771 or firstname.lastname@example.org