October liquidity events related to portfolio companies in which PIF invests through its private equity holdings.
Potential benefits of secondaries
A key potential benefit of a private equity strategy focused on secondaries is its potential to provide an enhanced liquidity profile compared to a primary-focused strategy. Because secondary investors enter after the investment period is complete, the underlying portfolio is much closer to the point of realization. This typically allows investors to mitigate the J-curve and shorten the duration of their investment.
Pomona enhanced liquidity
Pomona typically purchases seasoned funds well into their 10-year life cycle whose commitments are 70–90% called. Pomona manages the Pomona Investment Fund (PIF) portfolio to receive cash distributions as the more mature assets are realized, while also adding younger assets to the portfolio that are expected to enter the growth phase. This maturity profile has led to an enhanced liquidity profile and, in our view, puts PIF in a strong position to comfortably meet its outstanding commitments and to nimbly respond to new investment opportunities.
27% Average annual portfolio liquidity1 (as % of NAV)
8% Average annual distribution2,3 to shareholders (as % of NAV)
Notable liquidity events
Below is a list of articles that discuss companies that were recently liquidated from the fund. Please refer to the recent headlines and corresponding links below for more information on these liquidity events.
As part of establishing the new ownership structure, a wholly owned subsidiary of the Abu Dhabi Investment Authority became a significant minority coinvestor in Froneri, alongside PAI and a new single-asset continuation vehicle. The CV constitutes one of the largest single asset CV transactions in Europe to date, led by Vintage Strategies at Goldman Sachs Alternatives. The CV was oversubscribed, reflecting strong demand from both existing and new investors, and confidence in Froneri’s long-term growth prospects. This follows the Company’s successful debt financing earlier this year, further strengthening its balance sheet and supporting its future expansion.
Froneri was formed in 2016 through a 50:50 joint venture to combine PAI’s R&R Ice Cream with Nestlé’s European ice cream business. Since then, it has been transformed from a predominantly European, privatelabel producer into a brand-led, global business with €5.5 billion in revenue. Today, Froneri combines a portfolio of iconic ice cream brands with strong innovation capabilities and operational expertise. It also holds positions in the fast-growing snacking and premium segments, supported by trusted brand partnerships and a well-invested supply chain.
Montagu-backed Wireless Logic welcomes General Atlantic as minority shareholder
Wireless Logic, an independent global internet-of-things solutions provider, welcomed General Atlantic, a global investor, as a new minority shareholder, through investment from the firm’s BeyondNetZero climate growth equity fund. The Company’s existing shareholder, Montagu, a mid-market private equity firm, will remain the majority shareholder, reinvesting alongside General Atlantic.
Founded in 2000 and headquartered in the UK, Wireless Logic is dedicated to bridging the physical and digital worlds with seamless, secure, and scalable solutions for businesses in any sector. The platform helps clients from a diverse range of industries connect and manage all their IoT devices, no matter the device, geography, or network, in a single platform. The Company is net zero aligned through its commitment to SBTi, and plays a key role in enabling a vast range of IoT connected energy transition and climate applications, including smart grids, micro-mobility, industrial optimization, and precision agriculture.
With continued backing from Montagu and the additional support of General Atlantic, Wireless Logic is primed to continue its high growth trajectory. By pursuing an organic investment and active acquisition strategy, Wireless Logic is expected to further strengthen its market-leading position by driving global geographic expansion, diversifying market channels, and enhancing its platform offering.
SS&C to buy Carlyle's British fund network Calastone for about $1 billion
Financial software provider SS&C Technologies acquired Carlyle’s British fund network and data business Calastone for about 766 million pounds ($1.03 billion). The Windsor, Connecticut-headquartered SS&C plans to fund the purchase with a combination of debt and cash on hand, it said in a statement. Carlyle, which has $447 billion under management, bought Calastone from venture capital investor Octopus Ventures and Accel in 2020 for an undisclosed sum.
Calastone’s customers span 4,500 fund distribution and fund manager clients in 57 countries, processing over 250 billion pounds of investment value each month, according to its website.
PureHealth Holding PJSC, a large healthcare group in the Middle East, has agreed to acquire a 60% stake in Hellenic Healthcare Group, a private healthcare provider in Greece and Cyprus, in a transaction that values HHG at EUR 2.2 billion. HHG is currently owned 90% by CVC Capital Partners VI and 10% by Mr Dimitris Spyridis, HHG CEO. PureHealth will acquire a 60% stake in HHG, with CVC Capital Partners VI retaining 35% ownership, while CEO Dimitris Spyridis will retain a 5% stake in the company.
HHG has rapidly positioned itself as a leading provider in European healthcare in Greece and Cyprus, delivering advanced medical services across a network of 10 hospitals and 16 diagnostic centers across Greece and Cyprus. With a capacity of over 1,600 beds, the group serves approximately 1.4 million patients annually through a team of more than 6,700 healthcare professionals. HHG offers a full spectrum of medical specialties with expertise in complex fields such as oncology, cardiology, and neurosurgery, along with services including IVF treatments performing over 6,000 cycles annually and comprehensive homecare services
Oregon firm’s sale reportedly valued the business at $2.5 billion
Oregon regulatory compliance firm Navex Global changed hands, with investment funds led by Goldman Sachs and Blackstone taking a majority stake. Bloomberg reported that the deal valued Navex at $2.5 billion.
Navex, based in Lake Oswego, provides software and other tools to ensure that workers and organizations are complying with government rules and minimizing legal risk.
Founded as EthicsPoint in 1999, Navex Global had been held by private equity firms BC Partners and Vista Equity Partners. Navex said BC Partners will retain a “significant” minority stake in the business. BC Partners took a majority take in Navex seven years ago in a deal valued at $1.2 billion. Corporate data broker Pitchbook says Navex has 1,390 employees worldwide.
Risk of investing Discussed below are the investments generally made by Investment Funds and the principal risks that the Adviser and the Fund believe are associated with those investments and with direct investments in operating companies. These risks will, in turn, have an effect on the Fund. In response to adverse market, economic or political conditions, the Fund may invest in investment grade fixed income securities, money market instruments and affiliated or unaffiliated money market funds or may hold cash or cash equivalents for liquidity or defensive purposes, pending investment in longer-term opportunities. In addition, the Fund may also make these types of investments pending the investment of assets in Investment Funds and Co-Investment Opportunities or to maintain the liquidity necessary to effect repurchases of Shares. When the Fund takes a defensive position or otherwise makes these types of investments, it may not achieve its investment objective. The value of the Fund’s total net assets is expected to fluctuate in response to fluctuations in the value of the Investment Funds, direct investments and other assets in which the Fund invests. An investment in the Fund involves a high degree of risk, including the risk that the Shareholder’s entire investment may be lost. The Fund’s performance depends upon the Adviser’s selection of Investment Funds and direct investments in operating companies, the allocation of offering proceeds thereto, and the performance of the Investment Funds, direct investments, and other assets. The Investment Funds’ investment activities and investments in operating companies involve the risks associated with private equity investments generally. Risks include adverse changes in national or international economic conditions, adverse local market conditions, the financial conditions of portfolio companies, changes in the availability or terms of financing, changes in interest rates, exchange rates, corporate tax rates and other operating expenses, environmental laws and regulations, and other governmental rules and fiscal policies, energy prices, changes in the relative popularity of certain industries or the availability of purchasers to acquire companies, and dependence on cash flow, as well as acts of God, uninsurable losses, war, terrorism, earthquakes, hurricanes or floods and other factors which are beyond the control of the Fund or the Investment Funds. Unexpected volatility or lack of liquidity, such as the general market conditions that prevailed in 2008, could impair the Fund’s performance and result in its suffering losses. The value of the Fund’s total net assets is expected to fluctuate. To the extent that the Fund’s portfolio is concentrated in securities of a single issuer or issuers in a single sector, the investment risk may be increased. The Fund’s or an Investment Fund’s use of leverage is likely to cause the Fund’s average net assets to appreciate or depreciate at a greater rate than if leverage were not used. The Fund is a non-diversified, closed-end management investment company with limited performance history that a Shareholder can use to evaluate the Fund’s investment performance. The Fund may be unable to raise substantial capital, which could result in the Fund being unable to structure its investment portfolio as anticipated, and the returns achieved on these investments may be reduced as a result of allocating all of the Fund’s expenses over a smaller asset base. The initial operating expenses for a new fund, including start-up costs, which may be significant, may be higher than the expenses of an established fund. The Investment Funds may, in some cases, be newly organized with limited operating histories upon which to evaluate their performance. As such, the ability of the Adviser to evaluate past performance or to validate the investment strategies of such Investment Funds will be limited. In addition, the Adviser has not previously managed the assets of a closed-end registered investment company. Closed-End Fund; Liquidity Risks. The Fund is a non-diversified closed-end management investment company designed principally for long-term investors and is not intended to be a trading vehicle. An investor should not invest in the Fund if the investor needs a liquid investment. Closed-end funds differ from open-end management investment companies (commonly known as mutual funds) in that investors in a closed-end fund do not have the right to redeem their shares on a daily basis at a price based on net asset value. |