Fundless sponsor Georgia Oak runs secondary on Sailfish Boats, TPG reports initial haul for debut GP-led fund

Carlyle is exploring a bid for Heritage Provider Network.

Morning Hubsters!

How’s your November going? I’ve been off for a week for our special teachers’ in-service here in New Jersey, so just getting back into the loop. Anything I should check out? Reach me at cwitkowsky@buyoutsinsider.com.

Recap: Deal-by-deal shop Georgia Oak Partners ran a single-asset secondary, moving its portfolio Sailfish Boats into a continuation fund. Georgia Oak acquired Sailfish in 2017 from the company’s founder and former CEO Paul Hoppes.

The deal allowed the original deal-by-deal investors to cash out of their stakes in the company, or roll their interests into the continuation fund. An unnamed Connecticut-based institutional asset manager acquired LP stakes, according to a statement. Triago advised Georgia Oak on the transaction.

Secondary deals on fundless sponsor assets is a trend I’ve been watching for years. There was a slew of such deals several years ago, but it never seemed to catch on in a big way. Such transactions make sense though – fundless sponsors build portfolios of separate deals, many of them build up to a critical mass at which point they will try and raise a traditional commingled fund.

Packaging the individual deals into a single continuation fund is one way of delivering liquidity to original investors, allowing them to cash out and bring new investors on board. Single-asset transactions is another structure to achieve these ends.

“In PE there’s an acceleration of GP-led secondary deals for what were single-company primary acquisitions” done deal-by-deal, said Matt Swain, Global CEO of Triago. “Investing in an identifiable, easily stress-tested single-asset at a time of growing uncertainty is tremendously attractive.” Read more here on PE Hub.

Haul: Sticking with the secondaries topic, we got the first indication of TPG’s progress in raising its debut GP-led fund. TPG reported it had raised $315 million for the pool that hit the market in January, after the firm hired Matt Jones from Pantheon to co-lead the strategy alongside Michael Woolhouse.

My understanding is that TPG intends to have another close soon on a higher amount. TPG’s third quarter earnings report indicates that of the amount raised, the fund deployed $88 million. This is likely into CR Fitness, which is the first deal from the fund. Read more here on Buyouts.

Healthcare: Carlyle Group is exploring putting together an offer for Heritage Provider Network, a US urgent care group that has been considering a sale at a valuation of up to $10 billion, Reuters reports.

Carlyle has been in discussions with other private equity firms about assembling a consortium to make an offer for the company, Reuters said.

As we’ve seen, large deals have gotten harder to complete because of financing markets. Banks have lost money on buyout debt amid rising interest rates, as investors are demanding discounts forcing them to take losses on the debt or hold it on their balance sheets. Read more here at Reuters.

Quick people move: Our friend and former colleague Sarah Pringle joined boutique healthcare investment bank Edgemont Partners as a director to lead its financial sponsor coverage. Sarah wrote this here Wire for several years covering healthcare M&A. Looking forward to working with her from the other side of the aisle. Congrats, Sarah! Read more here on PE Hub.

That’s it for me! Hit me up as always with tips n’ gossip, feedback or whatever at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.