U.S. Corporate Ventures Group advises corporations and other Limited Partners on the
proper sale of interests in and obligations to private equity funds. Our group
selects capable secondary fund buyers mostly likely to appreciate the value of the holdings.
We thoughtfully structure the bidding process, determine portfolio value, and negotiate to
realize maximum return for our clients in a discrete, efficient manner.
The disposal of LP interests and obligations is relatively involved due to the number of
portfolio companies in each fund, the variable management fee schedule, expenses, and other terms
to consider. As a result, we've developed a proprietary model enabling us to manage the valuation and negotiation process
efficiently for our clients.
Benefit for Limited Partner Clients:
- End the outflow of non-strategic capital commitments to a fund
- Realize value now rather than waiting for exits and capital distributions
- Trigger tax benefits of approximately 40% of investment losses rather than waiting for a fund
to expire typically after ten years
U.S. CVG Case Study - Divestiture of LP Interests for a Multinational Corporation:
- Disposed of LP interests and unfunded obligations to five funds with an aggregate original cost basis of $50 million
- Terminated future capital obligations of $6.5 million and returned total proceeds of $2 million.
- Corporation realized tax benefits of approximately $15 million
- Transaction was executed efficiently and discretely.
Please reach Michael Seidler or Philip Limeri to discuss how we may help you achieve your objectives.
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