Forum Capital Partners has wrapped up two secondary transactions, the firm said Wednesday. In March 2012, Forum helped an undisclosed buyout group recapitalize its 2005-vintage first fund, it said. In November 2011, Forum helped a buyout firm replace two investors that had originally committed an aggregate of $100 million. Forum did not disclose specifics about the deals.
Forum Capital Partners is pleased to announce the completion of two complex secondary transactions that it executed on behalf of middle market private equity clients.
“We have advised a number of our general partner clients on how to navigate the natural dislocation that emerges in investment partnerships over time,” says Forum co-founder and Managing Partner Jeffrey Stern. “We are always ready to work with our clients to find high quality capital partners to replace existing investors who are seeking liquidity for various reasons, such as asset re-allocation, capital constraints, regulatory pressure, or simple fatigue.”
In November 2011, Forum helped the sponsor of a $700 million U.S. middle market buyout fund replace two investors that had originally committed an aggregate of $100 million and were seeking liquidity. Forum identified three leading institutions to buy out the other investors’ ownership interests and assume their unfunded commitments.
“We also have prior experience helping clients execute structured secondary transactions,” says Forum co-founder and Managing Partner Robert Schwabe. “We’ve previously worked with several groups to find new capital partners to recapitalize legacy portfolios and provide fresh capital for follow on or new investments.”
In March 2012, Forum helped an operationally-focused small buyout group recapitalize its 2005-vintage first fund, which had been principally backed by a global hedge fund. The Fund had four assets remaining in the portfolio, and Forum identified two new capital partners to buy out the existing investor, restructure the partnership, and provide recycling capabilities and additional capital for follow on and new investments.
“We believe this will become an increasingly common theme as certain investors seek to gain liquidity for their prior commitments to private equity and other funds,” Stern added.
About Forum Capital Partners:
Founded in 2001 by Jeffrey Stern and Robert Schwabe, Forum Capital Partners (www.forumcp.com) is an SEC-registered broker-dealer that serves as fund raising advisor and placement agent to top-tier private investment managers seeking to raise institutional capital for buyout, growth equity, real estate, infrastructure, natural resources and other investment funds worldwide.