Electra Private Equity investment trust has bought a portfolio of interests in five private equity funds from an unnamed bank in a transaction worth £56mn which represents a discount to the NAV of the underlying funds.
Electra assumes responsibility for £21mn worth of unfunded commitments as part of the transaction. Electra Private Equity is also likely to purchase an interest in a sixth fund by the end of the month, valued at £9mn. The investment trust is likely to venture into the secondary market again this year.
In Q4 2012, Electra Private Equity had indicated that it was likely to deploy more capital in secondaries transactions over the course of 2013. That would include direct secondaries transactions as well as purchases of limited partnership interests in funds. As of September 2012, the company held five secondary positions containing 17 investments worth an aggregate £34mn. The investment trust has indicated that it is seeing strong deal flow from financial institutions and banks in particular.