Madison Dearborn to make 3x its money with Aderant sale

Madison Dearborn Partners stands to triple its money with the sale of Aderant Holdings Inc, PE HUB has learned.

Roper Technologies Inc said Thursday it would buy Aderant for $695 million. The deal is expected to close within 30 days. Atlanta-based Aderant provides business management software for law firms and professional services firms.

Madison Dearborn first invested in the company in 2012, acquiring the stake held by Vista Equity Partners and management. It apparently invested a second time in December 2014, buying the rest of the company, according to a notice on the Vista Equity website.

Madsion Dearborn’s buy of Aderant included $240 million in debt, according to a January 2013 report from Thomson Reuters Loan Pricing Corp. The buyout firm invested a total of $150 million in the deal, PE HUB has learned.

Assuming  Aderant’s debt remained at $240 million, Madsion Dearborn stands to make three times its money.

The Aderant investment comes from Madison Dearborn’s Fund VI, which collected $4.1 billion in 2010. Fund VI generated a 23.5 percent net IRR and a 1.72x investment multiple as of December 31, according to data from the University of California Regents.

Madison Dearborn is fundraising for its seventh fund, which has a $3.75 billion target.

Executives for Madison Dearborn declined comment. Executives for Aderant couldn’t immediately be reached for comment.

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