Willis Stein & Partners, Landmark Partners and Vision Capital have completed a transaction benefiting investors in Willis Stein’s third fund, Willis Stein & Partners III.
Investors received the option to receive liquidity from the 2000 Fund in cash and/or the opportunity to benefit from the growth potential of the portfolio. The syndicate of new investors includes PineBridge Secondary Partners II.
The transaction is structured to address the objectives of investors in the fund, some of whom had expressed a desire for liquidity. Investors were given the option to take cash proceeds or to roll the value of their interests into the new partnership. A majority of investors elected to receive cash; however, a significant number chose to participate in the value creation opportunity in the three retained portfolio companies in the fund. The transaction provides an extended period for continued growth and development in the portfolio.
The partnership’s portfolio comprises three mid-market US businesses: Education Corporation of America, Strategic Materials and Velocitel.
Landmark’s investment will be made from Landmark Partners XIV, a USD2bn fund, and Vision Capital’s investment will be made from Vision Capital Partners VII.
Avy Stein (pictured) at Willis Stein says: “We are very pleased to have secured the future of ECA, SMI and Velocitel through this transaction with Landmark Partners, Vision Capital and other investors. Each business has a compelling business model, a strong position in its market and an industry leading management team in place. This transaction provides each business with the time necessary to fulfil its full potential.”
Scott Conners at Landmark Partners says: “Landmark Partners is delighted to have worked in partnership with Willis Stein and Vision Capital to develop a unique secondary transaction that creates a liquidity solution for limited partners and provides support for a very interesting portfolio of companies with good growth potential.”
