Pantheon leads process to move Ports America out of old Highstar fund

  • Total NAV of deal is about $1.2 bln
  • Deals had total of six total buyers
  • Oaktree acquired Ports America through purchase of Highstar

Pantheon is leading a deal that will give Oaktree Capital Group more time to manage an asset called Ports America, which it inherited when it acquired infrastructure group Highstar, sources told Buyouts.

The deal, which had six total buyers, is nearly closed, one of the sources said. Total net asset value of the deal was about $1.2 billion, the source said.

Ports America, a terminal operator, was held in AIG Highstar Capital III, which closed on $3.5 billion in 2007. Oaktree acquired infrastructure-focused Highstar in 2014.

The process, known as a single-asset deal, allows existing investors in Fund III to cash out of their stakes in Ports America or roll their interests into the continuation vehicle. Oaktree will continue to manage the company.

Campbell Lutyens worked as secondary advisor on the deal.

Oaktree is also involved in another GP-led secondary process. AlpInvest Partners and HarbourVest Partners are leading the fund restructuring of Oaktree’s Principal Fund V, which closed on about $2.8 billion in 2009.

The Principal Fund deal gives existing LPs the option to sell their stakes or stick with the GP in the continuation vehicle, Buyouts previously reported. That process has been in its election period, during which time LPs choose to sell or roll their interests into the continuation fund.

The Ports America deal comes after another large power-focused secondary completed last year. Ardian led the deal that moved energy-and-power assets off Manulife’s balance sheet, while enabling the investments and team to remain within the organization rather than spin out.

Action Item: See Oaktree’s Form ADV here: https://bit.ly/31PcRKL