Three Hills Capital Partners announces €192m secondary transaction

Monday, August 5, 2019

Three Hills Capital Partners (‘THCP’) is pleased to announce the establishment of two new funds, Three Hills Capital Solutions I ("THCS I") and Three Hills Capital Solutions II ("THCS II), in a €192m GP-led secondary transaction. The new funds, managed by THCP, will acquire a total of seven companies (the ‘Portfolio’) from Three Hills (‘Fund I’) and Three Hills Decalia (‘Fund II’). 

The transaction provides significant new capital to support follow on investments and deliver further value accretion in the Portfolio, as well as offering an attractive liquidity option to the existing investors in Fund I and Fund II. This transaction represents the second significant secondary transaction completed by funds managed by THCP in the last 18 months, following the closure in February 2018 of the acquisition of assets from Hutton Collins for a combined total value in excess of €110m.

The transaction was led by Idinvest Partners, a leading European institutional investor, with €8 billion under management. THCP received strong support for this transaction from their existing investors, with a large proportion of investors in Fund I and Fund II electing to re-invest into the new funds.

Mauro Moretti, Founder and Managing Partner at THCP, commented, “We are delighted to have completed this transaction, which demonstrates our commitment to maximising value creation in our investments. The transaction provides THCP with both fresh capital and additional time to continue working with the seven portfolio companies, with the aim to deliver additional growth and returns for our investors. It is a great pleasure to partner with the outstanding team at Idinvest, a leading European institutional investor, while also offering a highly attractive option to our existing investor base. This new relationship demonstrates the appeal of our franchise to institutional investors, who represent a growing proportion of our LP base”. 

Amine Rais, Managing Director at Idinvest Partners, said, “Idinvest is excited to embark on this new partnership with THCP, a leading mid-market capital provider in Europe. The Portfolio includes a diverse and attractive set of assets and we are happy to support the continued development of these companies.”

Among others, the Portfolio includes investments in MA Group, the leading niche provider of landing gear systems and composite aerostructure components for helicopters and medium-sized aircraft; Tomorrow, a multi-service business accelerator for fashion brands, who represent over 85 brands and provide a fully-integrated service offering including sales and distribution, consultancy, investment, product development and operations, and Genius Sports Group, the leading provider of sophisticated data-driven software solutions to leagues, federations and betting companies.  Genius, along with a fourth company, Sigma, a leading provider of outsourced solutions to blue chip retailers, were recently ranked by the Sunday Times in the top 200 UK companies by growth of international sales.   

THCP was advised by Rede Partners, an independent fundraising and secondaries adviser to the private equity industry. THCP was advised on this transaction by the Luxembourg Funds team of the international law firm Clifford Chance.

About Idinvest Partners
Idinvest is a leading European mid-market private equity firm. With €8bn under management, the firm has developed several areas of expertise including innovative start-up venture capital transactions; mid-market private debt, i.e. single-tranche, senior and subordinated debt; primary and secondary investment and private equity advisory services. Founded in 1997, Idinvest Partners used to belong to the Allianz Group until 2010, when it branched out as an independent firm. In January 2018, Idinvest Partners became a subsidiary of Eurazeo, a leading global investment company, with a diversified portfolio of €17bn in assets under management, including approximately €11bn from investment partners, invested in over 350 companies.
For more information please visit https://www.idinvest.com/en