Category: Transactions Year: 2019

Innovative secondary transaction creates value maximization opportunity for the remaining portfolio company in Highstar Fund III

Campbell Lutyens advised Oaktree Capital Management (“Oaktree”), a leading global alternative investment management firm, on a $1.3 billion secondary transaction, forming Highstar Capital Fund III Continuation Fund (the “Continuation Fund”). The capital was committed to the Continuation Fund to acquire Ports America (the “Company”), the last remaining investment in Highstar Capital Fund III (“Highstar III”). Highstar III was a $3.5 billion fund raised in 2007. The acquisition of the Company through the Continuation Fund represents one of the largest single asset secondary transactions completed to date globally.

Pantheon acted as lead investor in the transaction with several other prominent institutional investors participating in the syndicate. A competitive auction process generated an attractive price, which was offered to existing investors for optional liquidity. The transaction also generated follow on capital for add-on acquisitions and strategic investment in the Company. Ports America is the largest terminal operator and stevedore in the United States.

“This was a complex secondary transaction that proved to be a creative way to meet the varied objectives of Oaktree’s investors, and represents another milestone in the evolution of the secondary market,” said Gerald Cooper, Partner, Campbell Lutyens. “We expect that we will continue to see high caliber GPs use the secondary market to both create liquidity and enhance value for their LPs.”