SINGAPORE - Singapore sovereign wealth fund, GIC, and Goldman Sachs' Vintage Funds have emerged as the biggest limited partners in two of private equity firm Vector Capital's funds following a US$450 million (S$598 million) restructuring.
The funds - Vector Capital's Fund II and Fund III - have been restructured to provide more liquidity for the funds' investors and as a value-enhancing strategy for investors.
In particular, the restructuring enhances investments made in technology firms Corel and WatchGuard, which make up the majority of the remaining assets in Funds II and III.
Alex Slusky, Vector Capital's founder and chief investment officer, said in a media release on Tuesday (Jan 2): "Importantly, this transaction will provide these two companies and their management teams with the additional runway and committed capital to pursue strategic M&A (merger and acquisition) opportunities and execute on their growth strategies.
"Moreover, this is a terrific outcome for our Fund II and III limited partners, who are receiving a premium value that is meaningfully above the assets' original cost basis."
Choo Yong Cheen, chief investment officer of private equity at GIC, said: "GIC is pleased to be working with our partners at Vector Capital and Goldman Sachs to facilitate a fair and transparent process for Vector's limited partners while creating an attractive investment opportunity for GIC.
"We look forward to continuing the growth at Corel and WatchGuard, and to helping Vector maximise value at both companies."
Evercore is financial adviser and Kirkland & Ellis LLP is legal counsel to Vector Capital.