Aliante Partners, an Italian buyout investor, has completed a preferred equity transaction for the investment vehicle Aliante Equity 3.
Pomona Capital was the sole investor in the transaction that included a liquidity option provided to shareholders in the vehicle and a second preferred equity line for add-on acquisitions in the portfolio companies held by Aliante Equity 3.
Aliante Equity 3 invests in mid-market companies operating in the ‘Made in Italy’ sectors known for their quality and excellence, such as Food & Beverage and Design & Furniture, with a strong focus on buy & build to create value through consolidation in Europe and North America.
Paolo Righetto, Managing Partner at Aliante, says: “We are delighted to partner with Pomona Capital for the next chapter in Aliante Equity 3’s growth to further realise the potential of our companies as they continue on their value creation path and become global leaders. The transaction is a very good outcome for our existing shareholders as it provides them with the option to realise an exit and provides follow on capital for add-on acquisitions to the companies. The vote of confidence from the secondary market re-affirms the potential of our portfolio and the quality of our team.”
Sebastien Bowen, Partner at Pomona Capital, says: “We are pleased to partner with the team at Aliante Partners to provide a bespoke and innovative preferred equity solution, which caters for all stakeholders and enables the underlying portfolio to continue on its successful growth trajectory.”
Sunaina Sinha, Managing Partner at Cebile Capital, the sole financial advisor in the transaction, says: “The Aliante Equity 3 preferred equity transaction is a unique and complex GP-led secondary that reflects the growing adoption of preferred equity for liquidity and add-ons for leading mid-market financial sponsors.”
Chiomenti acted as the legal counsel for Aliante while Proskauer and Legance acted as the legal counsel for Pomona Capital.