Newgate Private Equity has agreed to acquire Arle Capital Partners Limited (ACPL), manager of the Candover 2005 and Candover 2008 Funds, as well as various co-investment vehicles.
Following completion ACPL, under Newgate’s ownership, will continue to manage the remaining investment in Expro International Group Holdings Limited (Expro), and oversee the orderly wind- down of the Funds. The Expro investment is to be managed within a newly-established special purpose entity on a basis that provides a materially reduced cost base and greater alignment with investors.
Newgate has been advising the advisory boards of the Funds since October 2016, when ACPL proposed a solvent liquidation of the manager in order that the Funds be wound up. Newgate explored a range of alternatives to the liquidation of ACPL and agreed with the advisory boards and ACPL that its acquisition by Newgate would provide investors with the most beneficial and cost effective solution.
David Morton, partner of Newgate, says: “We have enjoyed a long association with Arle/Candover and its investors – advising on the restructuring of the Candover 2008 Fund following the global financial crisis, and the extension of the Candover 2005 Fund in 2015, and we are delighted that this work has culminated in our acting as principal in acquiring ACPL in order to manage the final wind-down of the Funds on behalf of investors.
The structure of the Funds is complex, with over 200 investors and material value still to play for. We believe our acquisition represents an innovative solution for investors, and prevents ACPL from being placed in the hands of liquidators whilst considerable value is still at stake and commercial investment management decisions remain to be made. We look forward to working on investors’ behalf to maximise value from the Funds and to liquidate the complex fund structures in a timely and cost- effective manner.
‘Newgate has a long track record in helping investors and PE fund managers address complex issues. Once again we have invested our own capital to deliver a unique solution in complex circumstances. We are actively exploring a number of other situations in which we can deploy capital and specialist expertise for the benefit of investors.”
Morrison & Foerster LLP provided Newgate with legal advice on the acquisition and related fund and investment issues. The transaction is subject to regulatory approval and is expected to complete later in 2017. The terms of the transaction were not disclosed.
