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New 2ND Capital leads $134mn Vicente Capital fund restructuring

Other investors included Altamar Capital Partners and Overbrook A. Capital Group.

New 2ND Capital led a secondary deal that moved five portfolio companies out of Vicente Capital’s Growth Equity Fund into a continuation vehicle. Other investors included Altamar Capital Partners and Overbrook A. Capital Group. The companies in the $134 million deal were: SMT, which provides graphics, stats and video enhancement software for live TV broadcasts; outsourced language training business Global LT; ITI, which provides software for motor vehicle agency registrations, inspections, license plates and driver license renewals; Archer Education; and MedBridge Healthcare, which manages sleep diagnostic testing centers for hospitals and hospital systems. Evercore worked as secondary adviser on the deal.

Press Release

Vicente Capital Partners (VCP0), a leading growth equity investment firm, announced today the successful completion of the Vicente Capital Partners Long-Term Appreciation Fund, LP, a continuation vehicle for VCP’s Growth Equity Fund. Vicente Capital Partners Long-Term Appreciation Fund, LP, is comprised of $134 million in new capital commitments, which have funded the purchase of the following five portfolio companies:

SMT (www.smt.com), a leading provider of graphics, statistics and video enhancement software and services for live TV sports broadcast networks and sports leagues. Headquartered in Durham, NC.

Global LT (www.global-lt.com), a leading provider of outsourced language training, translation, cultural training and mobility solutions. Headquartered in Troy, MI.

ITI (www.intellectualtechnologyinc.com), a market leader in motor vehicle agency (DMV) print-on-demand software solutions for issuing registrations, inspections, license plates, and renewing driver licenses. Headquartered in Carlsbad, CA.

Archer Education (www.archeredu.com), a recognized leader in post-secondary education recruitment services. Headquartered in Santa Monica, CA.

MedBridge Healthcare (www.medbridgehealthcare.com), a healthcare BPO that manages sleep diagnostic testing centers for hospitals and hospital systems. Headquartered in Greenville, SC.

The continuation fund seeks to drive further value appreciation in the five companies over an extended timeframe. Vicente Capital Partners previously exited four platform companies from the Vicente Capital Partners Growth Equity Fund, LP.

Jay Ferguson, Co-Founder and Managing Partner of Vicente Capital Partners, said, “We are proud to announce the formation of the Vicente Capital Partners Long-Term Appreciation Fund, LP. It’s been our longstanding view that our portfolio will continue to appreciate in value with the passage of time. This secondary transaction will generate a gross 1.92x MOIC for Vicente Capital Partners Growth Equity Fund, LP, investors. The five remaining companies—SMT, GLT, ITI, Archer Education, and Medbridge Healthcare—will have additional time and capital to achieve enhanced returns. We are extremely appreciative of New 2ND Capital, the lead investor, as well as the investors in Vicente Capital Partners Growth Equity Fund for underwriting our initial strategy over 10 years ago.”

Tjarko Hektor, Managing Partner of New 2ND Capital, added, “We are excited to lead this transaction and support Vicente Capital Partners. We share their view that the five portfolio companies can benefit from additional time and capital to increase their value­­­­­­­­­­­­­­­­­. We feel this transaction exemplifies our strategy of investing in good companies and partnering with capable investment professionals focused on value creation.”

In addition to lead investor New 2ND Capital, the investor base of Vicente Capital Partners Long-Term Appreciation Fund, LP, is comprised of a diverse group of investors, including Altamar Capital Partners, Overbrook A. Capital Group, among others.

Evercore served as financial adviser to Vicente Capital Partners, Kirkland & Ellis served as legal adviser to the funds and Vicente Capital Partners.

About Vicente Capital Partners
Vicente Capital Partners is a private equity firm specializing in both non-control and control investments in growth businesses that have annual revenues between $10 million and $50 million. The firm’s investment professionals have a long and successful track record of partnering with management teams to create and realize value across a number of different industries including: Business Services (technology-enabled and Internet services, outsourced services, telecom services); Consumer Services (healthcare services, residential delivery, education); and Specialty Manufacturing (aerospace & defense, environmental products, networking/telecom equipment). www.vicentecapital.com

About New 2ND Capital
New 2ND Capital is an innovative private equity firm which invests in middle market companies through complex secondaries private equity transactions. The firm provides custom solutions that address liquidity, capital and strategic needs of sponsors and investors. New 2ND Capital works with general partners to replace or supplement existing capital sources, provides capital for follow-on and new investments, restructures existing partnerships to provide more time to grow and harvest investments and assists general partners in broadening their investor bases. www.new2ndcapital.com

About Altamar Capital Partners
Altamar Capital Partners is an independent financial services group with approximately €7.3 billion of historically committed capital and assets under distribution focused on providing institutional investors – including insurance companies and pension funds – as well as private high-net-worth clients, efficient access to alternative investments. These offerings include private equity, venture capital, life sciences, real assets and private credit deployed through primary, secondary, and direct and co-investment strategies.