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Committed Advisors leads Milestone’s fund revamp

  • Deal being syndicated to other investors
  • Park Hill working as secondary adviser
  • Milestone has been trying to raise Fund V for 18 months

Committed Advisors is leading a restructuring of two older funds for lower-middle-market investor Milestone Partners, three sources told Buyouts.

While Committed Advisors is lead buyer, the deal is being syndicated to other investors, sources said. Park Hill Group is working as secondary adviser on the deal.

The deal, which could total around $400 million, will move out specialty finance assets from Milestone’s third and fourth funds into a newly formed vehicle. LPs in the older funds will have the option to either sell their interests in the funds or roll into the new pool.

Going forward, Milestone plans to shift its primary focus to specialty finance investments, sources previously told Buyouts. Milestone, formed in 1995, invests in tech-enabled services, software, financial services and tech-driven manufacturing in the lower middle market.

“The rationale was a lot more around the pivoting to focus on specialty finance,” one of the sources previously said.

Milestone has been in the market with its fifth fund for at least 18 months, according to a Form D filed in January 2018. The filing for Milestone Partners V LP does not list a fundraising target. The fundraising has been challenging, which spurred Milestone to explore secondary options.

Managing Partners Scott Warren and John Shoemaker did not respond to a request for comment. Milestone raised $300 million for Fund IV in 2013; $240 million for Fund III in 2009; and $120 million for Fund II in 2004.

Committed Advisors is a secondary firm based in Paris that has traditionally worked in the smaller end of the market. The firm was formed by ex-AXA PE (now Ardian) executives Daniel Benin and Barthélémy de Beaupuy in 2010.

Committed Advisors is targeting 1.25 billion euros for its fourth fund, and raised just more than 1 billion euros in 2017.

Committed Advisors declined to comment.

Action Item: See Milestone’s Form ADV here: https://bit.ly/2RioqIG