Cipio Partners, a secondary direct investment firm, and UK private equity firm 3i Group have announced the signing of a definitive agreement for the sale of interests in ten companies c
Cipio Partners, a secondary direct investment firm, and UK private equity firm 3i Group have announced the signing of a definitive agreement for the sale of interests in ten companies currently part of 3i’s European venture portfolio.
‘3i has invested in a number of mature, yet high-growth assets and Cipio is delighted to have been chosen to take over from 3i,’ says Roland Dennert, a partner at Cipio (pictured). ‘Our ability to rapidly execute transactions with large asset pools was certainly part of the solution 3i was seeking, and our favourable track record with both vendors and portfolio companies in past deals made Cipio the partner of choice. We are delighted to bring our combined European and US angles to bear for the portfolio companies.’
The transaction reflects the evolution of the private equity industry and of the secondary direct market, with a growing number of private equity firms exploring alternative liquidity routes for their portfolios.
Maximilian Schroeck, a managing partner at Cipio in the US, says: ‘After starting out with several acquisitions from Fortune 500-type corporations, over the last six to eight quarters Cipio has seen very strong deal-flow from the full range of market participants including banks, private equity firms and corporates in our core markets in Europe, the US and the Middle East. Against the backdrop of the macroeconomic situation, secondary direct market activity is set to increase and we are very well positioned within it.’
3i Group refocused its strategy away from venture capital to growth capital investment in early 2008.
Achim Lederle, 3i partner who co-led the transaction, says: ‘This sale of 3i’s stakes in these venture capital assets is consistent with 3i’s strategy to realise our legacy venture capital portfolio at strong values and our strategy to invest on profitable fast growing SMEs (growth capital), mid market buyouts and infrastructure opportunities. We are pleased to name Cipio, a reputable secondary fund with good experience in building companies, as the new shareholder who we believe will assist these firms to continue their growth paths in the spirit of the original 3i investment.’
Further details of the companies included in the transaction were not disclosed.
