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Vision Capital acquires majority of Morgan Grenfell portfolio investments

Deutsche Bank-owned Morgan Grenfell Private Equity is selling the majority of its investments to UK-based Vision Capital for a reported $100m.

The move comes at the same time as Deutsche Bank is finalising a deal with management and a consortium of private equity firms to sell DB Capital Partners for an estimated E1.5bn.

The new partnerships are to be financed by Goldman Sachs' GS Vintage Fund, a fund which targets ‘synthetic secondaries' (the acquisition of portfolios of direct private equity investments).

Graham Clempson, CEO of MGPE said that he was pleased to be able to realise value for investors in a difficult market. Clempson is presently involved in the negotiations over DB Capital Partners as well.

Julian Mash of Vision Capital said that he believed the transaction to be one of the first synthetic secondary portfolio transactions in Europe. ‘We are delighted to have completed this transaction with MGPE and are excited by the prospect of working with the portfolio companies in order to help them achieve their full potential free from the inevitable constraints of a closed fund,' he added.

Deutsche Bank is one of several large investment banks hoping to reduce their exposure to private equity by shedding both closed funds and direct investments. Such deals present opportunities for secondaries players in the present difficult exit environment.

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