Chris Witkowsky
Such secondary processes that focus on only one company are on the rise as buyers with large funds are willing to take greater risk on concentrated bets.
Some GPs have asked for provisions in fund contracts that would allow them to claw back those waived fees at the end of the fund life in case they don’t make up the fees in subsequent exits.
Crestview ran the process, called a tender offer, to allow LPs in Fund III to sell out of their interests in the fund.
In November, Washington State Investment Board committed $175m to the fund, with an additional $75m of co-investment capital.
Invesco Private Capital has committed more than $4.5bn to more than 900 private equity and venture capital partnerships.
TPG first invested in CAA in 2010, and then boosted its stake above a majority hold in 2014.
A club mentality is now present in the private equity secondaries market. Buyers are joining forces to complete big deals, dispersing risk in large buyer groups.
The process does not include a shot of fresh capital invested into a new fund, known as a staple.
The fund has not yet started investing, as Blackstone polishes off one or two more exits out of Fund VII.
Kessenich formed Excellere in 2006 along with Robert Martin, who died in 2017 after battling cancer.