HarbourVest-managed secondary funds together with HarbourVest Global Private Equity Limited (HVPE), a closed-end investment company, will, through an acquisition vehicle, make a public offer for all bearer shares of Absolute Private Equity, Ltd (Absolute) currently in circulation. Absolute is an investment company incorporated in Switzerland and listed on SIX Swiss Exchange.
The tender offer is for USD17.25 cash per Absolute share and is subject to a minimum acceptance level of 50.01% and other customary conditions. At a 100% acceptance level, the transaction values Absolute at USD752 million. The pre-announcement of the public tender offer was issued today, and the offer prospectus will be published at the latest in early June 2011. Absolute’s Board of Directors supports the offer and intends in its formal report to recommend that its shareholders accept the offer.
Absolute primarily invests in private funds across various sectors of the private equity market focusing on US, European and other international buyout and venture capital funds. The NAV per share of Absolute is USD24.16 as of 21 April 2011, and the 60 day volume weighted average share price on SIX Swiss Exchange is USD16.25 as of 21 April 2011.
“HarbourVest is a leading global private equity investment firm and an ideal partner for Absolute Private Equity with its large experience in managing private equity partnership portfolios,” says Thomas Amstutz, Chairman of Absolute Private Equity AG. “This transaction offers shareholders an opportunity to exit their investment for cash at an attractive price, whilst it enables others to remain invested alongside an experienced partner.”
John Toomey, managing director of HarbourVest Partners, LLC, says: “HarbourVest’s secondary team is focused on finding unique transactions where it can provide solutions for private equity asset owners,” “We are pleased to be working on a cooperative basis with the board of Absolute. This is an attractive opportunity for HarbourVest-managed secondary funds and HVPE to acquire a significant stake in a portfolio of high-quality, global private equity assets.”
HarbourVest’s flagship secondary fund, Dover Street VII LP, is a global fund with USD2.9 billion in commitments from investors. Dover Street VII, which was oversubscribed, closed in April 2009 and makes secondary investments in venture capital, leveraged buyout, and other private equity assets, as well as portfolios of operating companies.
The transaction is expected to be completed in the third quarter of 2011. HarbourVest has been advised by Debevoise & Plimpton LLP and Pestalozzi Attorneys at Law Ltd.
