Spice Private Equity acquired through a secondary transaction an LP stake in DLJ South America Partners, a private equity fund managed by Victoria Capital Partners, a regionally dedicated private equity manager with a broad geographic coverage in South America covering Brazil, Chile, Colombia, Peru and Argentina.
Victoria Capital Partners was formed in 2006 through the spin-off of DLJ South America Partners from Credit Suisse and has capital commitments of over USD 1.7 billion in aggregate. Victoria Capital Partners is currently comprised of 14 investment professionals in three regional offices in South America: Buenos Aires (Argentina), São Paulo (Brazil) and Bogotá (Colombia).
DLJ South America Partners is a 2007 vintage fund with total commitments of approximately USD 300 million. The fund has been highly successful and still holds a quality portfolio which should create further substantial upside. The 4 portfolio companies operate in the financial services, healthcare and consumer industries.
The investment represented a further step in the implementation of Spice Private Equity’s overall emerging markets strategy and is the first investment in Latin America since the strategic repositioning of the Company. The opportunity has been proprietarily sourced.
Photo: São Paulo, Brazil
Spice Private Equity has co-invested with Helios Investment Partners (“Helios”) to acquire a significant minority stake in Africa Oil Corporation (“AOC”), an upstream E&P company in East Africa. Total Spice Private Equity contribution was USD 5.0 million.
AOC is a pioneering East African focused oil company with a footprint covering seven oil blocks across Kenya and Ethiopia, core target regions of Spice Private Equity investment strategy. AOC has a dual listing in the Toronto and Nasdaq Stockholm stock exchanges.
All involved partners have long standing track records in the region and in the industry. Helios is one of the most reputable and established private equity managers in Africa and has extensive experience with energy and particularly oil related reansactions in the region. Helios was founded in 2004 by former senior professionals of TPG Capital. Spice Private Equity has a long standing relationship with Helios’ principals and it has made a commitment to its current fund. AOC’s management team is highly experienced and is backed by the Lundin Group, a successful investor in the sector and in the region. AOC’s operating partner is Tullow, a leading E&P group with worldwide operations and long standing presence in Africa.
The output of the Kenyan oil blocks under development is expected to importantly boost in the country’s GDP. By investing through a structured transaction at an attractive part of the cycle, characterized by historically low prices, Spice Private Equity is entering a key industry for the region’s development.
Photo: Nairobi, Kenya
Through a secondary transaction bidding process, Spice Private Equity acquired from a third party LP stakes in GP Capital Partners IV, Magma Fund I and Magma Fund II, a portfolio of private equity investments managed by GP Investments.
GP Capital Partners IV is a 2007 vintage fund with total commitments of approximately USD 1.27 billion. The fund still holds 4 investments with upside potential. The portfolio companies operate in different sectors, from refractories to business services. Magma Fund and Magma Fund II are two funds set-up for the investment in a refractories company (also present in GP Capital Partners IV).
GP Investments is a Latin American diversified asset management company with private equity investments focused on the acquisition of companies with high potential for value creation (over USD 5 billion invested in PE since 1993). GP Investments is also the largest shareholder in Spice Private Equity and the parent company of GP Advisors, Spice Private Equity’s investment manager.
The investment represents a further step in the implementation of Spice Private Equity’s overall emerging markets strategy adding an established GP to the portfolio and increasing the proportion of Latin American secondary transactions.
Photo: São Paulo, Brazil
Through a secondary transaction, Spice Private Equity acquired a LP stake in Quvat Capital Partners II, a private equity fund managed by Quvat, a leading Indonesian private equity fund manager with a deep local network.
The fund is a 2007 vintage with more than USD 200 million of capital commitment. The 12 portfolio companies operate in a broad array of industries including financial services, entertainment, mining, logistics and real estate. The assets are mostly based in Indonesia with some exposure to neighboring countries such as Singapore and Malaysia.
The investment represented an opportunity to purchase a mature fund position at an attractive price. It provides exposure to a diversified portfolio of companies in Indonesia, which is one of the largest countries in the world in terms of population and GDP and one with the highest GDP growth expectations.
Quvat Capital Partner II is fully invested and out of its investment period. www.quvat.com
Photo: Jakarta, Indonesia
Spice Private Equity has completed a secondary transaction, acquiring LP interests in NYLIM Jacob Ballas India Fund III, LLC, Tara India Fund III, LLC, GP Capital Partners IV, L.P., and GP Capital Partners V, L.P.. The total private equity exposure acquired is USD 20.0m.
NYLIM Jacob Ballas India Fund III, LLC, (“Fund III”) is a 2008 vintage fund with USD 439 million total commitments and managed by NYLIM Jacob Ballas Asset Management Company III, LLC (“AMC”), a Mauritius company. Including Fund III, AMC and its affiliates have raised 3 India focused private equity funds, managing over USD 600 million in capital. Fund III has a diversified portfolio with exposure to infrastructure, healthcare, financial services and business services sectors.
Tara India Fund III, LLC is a 2008 vintage fund with USD 225 million total commitments and managed by IL&FS Investment Managers Limited (“IIML”), the private equity arm of IL&FS. IIML has been part of IL&FS since 1996 and has raised and managed 16 funds with the current AUM of USD 3.85 billion. Fund III has a diversified portfolio with exposure to infrastructure, consumer, industrial, business services, natural resources sectors and real estate.
GP Capital Partners IV, L.P., and GP Capital Partners V, L.P., are two partnerships managed by affiliates of GP Investments, Ltd., which have invested over USD 5 billion in more than 50 companies across 15 different industries since its inception in 1993. GP Investments targets large-cap opportunities with potential for both management and operational improvements. GP Capital Partners IV is a 2007 vintage partnership with total commitments of roughly USD 1.27 billion. The partnership still holds 4 investments with upside potential. The portfolio companies operate in the refractories and business services sectors. This LP interest acquisition increases the exposure to this partnership, following the transaction completed in April 2015.
GP Capital Partners V is a 2008 vintage partnership with total commitments of approximately USD 1.05 billion. The partnership still holds 4 investments in the consumer and mining sectors with potential for future growth.
This secondary transaction represented a further step in the implementation of Spice Private Equity’s overall emerging markets strategy adding established GPs to the portfolio and increasing the allocation to secondary transactions in Asia and Latin America.
Photo: New Delhi, India