Strategic Partners has emerged as the lead backer of the deal in which a diversified portfolio of mid-market private assets was brought off the balance sheet a credit firm, PDI‘s sister title Secondaries Investor has learned.
The deal involved moving assets from Angel Island Capital, a Golden Gate Capital portfolio company, into a closed-ended fund, according to two sources familiar with the matter.
The portfolio, which was syndicated out to a group of investors, was used to seed AIC Opportunities Fund II, a $440 million fund that closed in early March, Secondaries Investor reported.
Campbell Lutyens advised on the deal, according to a statement about the close of AIC Opportunities Fund II in early March.
The Blackstone subsidiary used a credit sleeve from Strategic Partners VIII to back the deal, according to one of the sources. Strategic Partners VIII closed in July on $11.1 billion with support from investors such as the California State Teachers’ Retirement System, Fubon Life Insurance and Cathay Life Insurance, Secondaries Investor reported.
Speaking to Secondaries Investor in December, Strategic Partners’ global head Verdun Perry said debt secondaries is “not quite ripe for secondaries yet – certainly not for a dedicated programme of size”.
The deal is one of a growing number of GP-led processes carried out primarily to expand the investor base rather than to provide liquidity. Manulife, Tikehau Capital, Investcorp and Eurazeo are among the firms to have completed similar deals, Secondaries Investor has reported.
San Francisco-headquartered Golden Gate is structured as a private holding company, maintaining ownership of companies for an indefinite period. Angel Island Capital manages approximately $3.7 billion in assets across a range of credit strategies.
Golden Gate and Campbell Lutyens declined to comment. Blackstone did not respond to a request for comment.