PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Seventure closes its first secondary sale of assets to Headway Capital

French venture capital firm Seventure Partners, with the help of specialist secondary advisory firm Rainmakers Private Equity, has sold all or parts of its minority shareholdings within ei

French venture capital firm Seventure Partners, with the help of specialist secondary advisory firm Rainmakers Private Equity, has sold all or parts of its minority shareholdings within eight companies from various older FCPI funds to funds advised by private equity secondary specialist Headway Capital Partners. 
 
The strategic choice by Seventure Partners to hire the Franco-American firm Rainmakers Private Equity as an advisor enabled the marketing of the portfolio within 3 geographies (USA, UK and France) and led to a simultaneous sale of the assets, ahead of the dissolution of Seventure Partners’ first FCPI, Banque Populaires Innovation, which was created in 1997.
 
Jim Soleymanlou from Rainmakers Private Equity declared: ‘In this complex transaction, Headway was able to creatively structure a solution tailored to the needs of the sellers and to execute flawlessly, completing ahead of schedule the purchase of stakes in eight different companies from 5 different FCPI vehicles managed by Seventure.’
 
All or a part of the underlying shareholdings  owned by the FCPIs managed by Seventure Partners – Deal Informatique, Délia Systems, FB TEchonologies, Kezia, Metabolic Explorer, Metod Localisation, Montecristo and Sefas Innovation – have been divested. Seventure Partners will continue to manage some of the investments on behalf of Headway Capital Partners’ advised funds.   
 
‘As opposed to the traditional view among primary investors, the secondary sale of a portfolio allows the seller to obtain an interesting valuation and is a real portfolio management tool for general partners,’ says Valérie Gombart, Managing Partner of Seventure Partners. ‘In addition to allowing the potential liquidation of a fund, it is also a means to alleviate the work load of investment professionals from older investments and to liberate them to focus on new investments.’
 
Sebastian Junoy, Partner at Headway Capital Partners, adds: ‘We are pleased to have executed this pioneering transaction in partnership with Seventure Partners and are excited to be able to support these promising companies.’
 
This is a win/win deal for both parties as on the one hand it has allowed Seventure to successfully liquidate its assets at a satisfactory price and on the other, it has allowed Headway to acquire a portfolio of companies with significant up-side potential and which will have more time to grow and further mature before seeking exits through trade sales or listings.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured