Coller Capital led the investment in what is considered the largest GP restructuring process yet involving Nordic Capital’s 2008 seventh fund. Goldman Sachs joined in the deal, which transferred nine unlisted portfolio companies from Fund VII into a special purpose vehicle called Nordic Capital CV1 with a five-year investment period. The deal, which allowed Fund VII limited partners to cash out or roll their interests into the SPV, was valued at 2.5 billion euros ($3.09 billion). The fund restructuring will allow Nordic to hold the investments longer.
On the closing of the transaction today – the world’s largest GP-led secondary transaction – the remaining nine unlisted portfolio companies in Nordic Capital Fund VII (Nordic Capital VII), with a transaction value of €2.5 billion, were transferred to a continuation vehicle, Nordic Capital CV1. The transaction enables the maximisation of the value creation potential of these companies by providing them with active support and fresh capital over a five-year investment period.
Coller Capital acted as lead investor in the transaction, which was fully underwritten by Coller Capital’s seventh fund and Goldman Sachs Asset Management’s Vintage Funds.
“Coller Capital’s long relationship with Nordic Capital and in-depth knowledge of the portfolio companies meant it was ideally positioned to become the lead investor. The firm’s track record in complex GP-led processes, and ability to underwrite a large investment were key to the transaction. We look forward to partnering with the fantastic team at Nordic Capital on the development of the nine companies in CV1 over the next few years” said Jeremy Coller, CIO of Coller Capital.
Kristoffer Melinder, Managing Partner, advisor to the Nordic Capital Funds, said: “Nordic Capital is delighted to have completed this landmark transaction. We are confident that with additional time, active management and targeted follow-on capital, these nine companies will create significant value over the next five years. This is a great example of innovation in today’s secondary market.”
About Coller Capital
Coller Capital, a leading player in private equity ‘secondaries’, acquires portfolios of positions in private equity funds and unquoted companies from their original owners – investing up to $1 billion or more in individual transactions.
Founded in 1990, the firm is headquartered in London, and has offices in New York and Hong Kong. Coller’s multinational investment team – the world’s largest dedicated to secondaries – has a truly global reach.
In December 2015, the firm closed Coller International Partners VII, with capital commitments of $7.15 billion and backing from approximately 170 of the world’s leading institutional investors.
About Nordic Capital
Nordic Capital is a leading private equity investor in the Nordic region with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a proven track record. Core sectors are Healthcare, Technology & Payments, Financial Services, Industrial Goods & Services and Consumer & Retail, and key regions are the Nordics, Northern Europe, and globally for Healthcare. Since inception in 1989, Nordic Capital has invested EUR 12 billion in close to 100 investments. The Nordic Capital Funds are based in Jersey and are advised by advisory entities, which are based in Sweden, Denmark, Finland, Norway, Germany and the UK. For further information about Nordic Capital, please visit www.nordiccapital.com
About Goldman Sachs Asset Management’s Vintage Funds
The Vintage Funds invest in the secondary market for private equity, providing liquidity, capital and partnering solutions to private market investors and managers globally. With over $26 billion in committed capital, the Vintage Funds have been innovators in the secondary market for over 20 years. The Vintage Funds are managed by the Alternative Investments & Manager Selection (“AIMS”) Group within Goldman Sachs Asset Management. The AIMS Group provides investors with investment and advisory solutions across hedge fund, private equity, real estate, public equity, fixed income and environmental, social, governance and impact-focused investment strategies. For more information, visit: www.gsam.com