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More Direct Dealing by LPs

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December 12, 2013

The trend towards direct investments by limited partners continues unabated, notes your DealMarket Digest edtor. This week, Financial News reported that Adveq and The London Pensions Fund Authority did a co-investment in parcel delivery venture, Secured Mail, whose customers include Amazon, Domino’s Pizza and British Gas owner Centrica.

 

Also this week, Partners Group, a Swiss limited partner and PE fund manager, announced it had acquired Die Menü-Manufaktur Hofmann, a market-leading catering services company and provider of frozen food products, according to Reuters.

 

The Secured Mail deal is the first one for the London Pensions fund, but it is reportedly shifting its strategy towards direct investments. Partners Group has a bit more experience, claiming more than 100 direct deals since 1996. In a joint press release with Adveq, the LPFA said it was one of the largest Local Government Pension Schemes funds in the UK.

 

The two co-invested with Next Wave Partners, a UK based growth capital investor. The trend was spotted and studied by several research organizations this year, as well as industry media, including Preqin (see graphic). (Image source: HBS using Preqin data)

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