Vision Capital Limited (“Vision Capital”) has today completed the acquisition of substantially the entire investment portfolio of CS Structured Credit Fund Limited for an undisclosed sum.  The transaction demonstrates Vision Capital’s leadership in secondary direct portfolios, following its acquisition of a portfolio from Morgan Grenfell Private Equity in 2003.

The five investments in this portfolio comprise controlling stakes in:

• Avebury Taverns, which owns over 700 UK tenanted pubs
• the Elegant Hotels Group, with a chain of five luxury hotels in Barbados, principally on its  “Platinum” west coast;

as well as interests in:

• Cabot Financial, the purchaser of under-performing consumer debt, alongside Barclays Private Equity
• RoadChef, a leading operator of motorway service areas in the UK
• Resource Partners Group, a finance company for providers of services to the UK public sector

The portfolio companies are being acquired by a new investment partnership with £100 million of committed capital, established and managed by Vision Capital.  The lead investors in the partnership are Goldman Sachs’ GS Vintage Funds, together with funds managed by Landmark Partners. A small number of other investors will also commit capital to the new partnership.

Vision Capital acquires secondary direct portfolios from private equity firms and their investors.  The sale of whole portfolios, rather than individual companies, is a relatively new and innovative exit mechanism for private equity firms and their investors from mature investment portfolios. 

Julian Mash, Chief Executive of Vision Capital, said: “The conclusion of this deal, following last year’s portfolio transaction with Morgan Grenfell Private Equity, confirms our leading position as a buyer of secondary direct portfolios.  We are looking forward to working with management to fulfil the potential of these companies.  For a second time, we express our gratitude for Goldman Sachs’ support as lead investor in this transaction, and welcome Landmark Partners as an investor with us.”