BPOC establishes a $425 million continuation fund co-led by Apollo S3, Blackstone Strategic Partners and Five Arrows
BPOC, a pure-play healthcare investor, today announced the closing of its first continuation vehicle, a $425 million transaction co-led by investment funds affiliated with Apollo S3, Blackstone Strategic Partners and Five Arrows.
The continuation fund consists of five healthcare services companies previously held by Beecken Petty O'Keefe & Company Fund IV, L.P. and Beecken Petty O'Keefe & Company Fund IV-A, L.P. (together "BPOC Fund IV"), 2013 vintage funds with $503 million in combined total capital commitments.
The continuation fund will provide more time and, in certain cases, additional capital to assist each portfolio company in further accelerating its full growth potential.
As part of the transaction, existing investors in BPOC Fund IV were provided with the choice to receive full liquidity or to fully or partially re-invest into the new continuation fund.
JP Morgan, Newbury Partners, Committed Advisors and Kline Hill Partners also invested in the continuation vehicle.
"We are grateful for the support of our new investors and believe this new vehicle will enable us to continue to create value at certain Fund IV companies, while providing liquidity options for our existing Fund IV investors," said Gregory Moerschel, Managing Partner of BPOC.
"We are pleased to partner with BPOC and the other investors to help address liquidity, duration and capital considerations for BPOC's investors and portfolio companies. We think this transaction is an excellent example of the strength of our underwriting and our partnership-oriented approach," said Steve Lessar, Partner at Apollo S3.
Asante Capital Group Advisors LLC acted as exclusive advisor to BPOC on the transaction. Kirkland & Ellis LLP and Paul Hastings LLP served as legal counsel to BPOC, while Proskauer Rose LLP represented Apollo S3, Blackstone Strategic Partners and Five Arrows.
About Apollo S3
S3 is Apollo's Sponsor & Secondary Solutions business. S3 provides flexible capital solutions to asset managers and limited partners across the yield, hybrid, and equity spectrum. Since inception, S3 has committed or deployed more than $13 billion across these strategies. S3 is a natural extension of Apollo's global investment platform, offering partner-oriented capital across asset classes including private equity, private credit, infrastructure and real estate. As of December 31, 2022, Apollo had total assets under management of approximately $548 billion.
About Blackstone Strategic Partners
Blackstone Strategic Partners is a global leader in illiquid fund investing including secondaries, coinvestments and primary advisory. Founded in 2000, Strategic Partners has $68 billion of investor capital under management (as of December 31, 2022) and is one of the most prolific secondary market participants in the world, having closed over 1,900 transactions across its private equity, infrastructure, and real estate platforms, representing more than 5,100 underlying fund interests managed by over 1,550 managers. Strategic Partners provides a range of solutions across illiquid asset classes for investors and financial sponsors, including LP liquidity solutions and GP-focused solutions such as GP-led secondaries and coinvestments.
About Five Arrows
Five Arrows is the alternative assets arm of Rothschild & Co and has €23 billion AuM with offices in Paris, London, New York, Los Angeles, San Francisco and Luxembourg. Rothschild & Co is family-controlled and independent and has been at the centre of the world's financial markets for over 200 years. With a values-driven culture, the Group brings expertise, intellectual capital and a global network to provide a distinct perspective that makes a meaningful difference to its clients. Five Arrows deploys the firm's capital, alongside leading institutional and private investors, through a series of funds dedicated to corporate and secondary private equity, multi-managers funds and co-investments, as well as private credit.
Five Arrows Secondary Opportunities ("FASO") has provided tailor-made liquidity solutions for investors and general partners for two decades. Its proven expertise in complex transactions makes FASO a reliable partner for secondary transactions in Europe and in the US. FASO also shares the guiding principles of Rothschild & Co, a strategic and responsible financial services partner known for its creative thinking and innovative investment solutions combined with a commitment to absolute discretion.
About Asante Capital Group Advisors LLC
Asante is a leading independent global advisory for private markets. Founded in 2010, Asante has raised over $55 billion for primary capital raises, secondary transactions and direct investments from investors based across North America, Europe, Asia-Pacific and the Middle East. Asante's secondaries advisory team has advised on a wide range of GP-led transactions including single and multi-asset continuation funds, tender offers, NAV financings and other GP liquidity solutions. For more information on Asante, please visit its website at www.asantecapital.com.