This type of pass-the-parcel deal often takes place just before a firm goes out fund raising. Investors want to see at least some of their capital back before they commit any more money to a fund. So, there’s pressure on general partners to find an alternative means of crystallising profits and generating returns, even in an unreceptive market. Transferring assets to another fund is a quick and easy way to do this.
Last year, for example, BC Partners bought private hospital provider General Healthcare from Cinven for e2.1
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