Golden Gate Capital is seeking to raise approximately $1.8bn from investors, including Ardian, Neuberger Berman, and Apollo Global Management’s S3, through a tender offer that allows some existing backers of its evergreen fund to exit, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the San Francisco-based private equity firm is running the tender for its Golden Gate Opportunity Fund LP, with around $1.5bn expected to come from the offer itself. An additional $300m is anticipated to support a new private equity fund alongside the tender, the sources added.
Golden Gate’s evergreen structure typically allows investors to commit capital on a rolling basis without a fixed end date. This tender offer provides liquidity to current investors while bringing in new participants to replace those exiting.
Jefferies is advising on the process, which is expected to close in early January. Tender offers remain a niche segment of the secondary private equity market, representing just 3% of the $71bn in secondary transactions executed by private asset managers last year, according to Evercore.
