HarbourVest Partners on Monday proposed to acquire 100% of London-based private equity firm SVG Capital’s investment portfolio, for a purchase price of at least £783.1 million ($1.02 billion).
The proposal was made “because SVG Capital has indicated a willingness for an asset purchase transaction,” HarbourVest said in a news release. “HarbourVest notes that in an asset purchase transaction SVG Capital will retain the inherent costs and risks of winding down SVG Capital that, were the share offer proposed by HarbourVest to be effected, would otherwise be assumed by HarbourVest,” it added.
The purchase price would enable SVG Capital to return more than 700 pence per share to shareholders, HarbourVest said.
The new bid comes four days after SVG Capital said it had agreed in principle to sell 100% of its investment portfolio to Goldman Sachs Asset Management’s alternative investments and manager selection group and certain investment entities managed by the C$287.3 billion ($218.8 billion) Canada Pension Plan Investment Board, Toronto. That asset purchase transaction was valued at £748 million.
The offers follow a bid by HarbourVest last month for SVG Capital, in a deal valuing the firm at £1 billion. SVG Capital also received an offer earlier this month by private equity firms Pomona Capital and Pantheon Ventures for 50% of the investment portfolio.
“The asset proposal is not subject to due diligence and, as a result, HarbourVest expects that it could complete a transaction in a time frame that would not be longer than that proposed by” GSAM’s unit and CPPIB, the HarbourVest release added.
In a separate news release Monday, SVG Capital confirmed it had received a proposal from HarbourVest. It said it will meet with the firm’s advisers Monday to “understand the details of the asset purchase transaction.”
SVG Capital added that it continues to work with Goldman Sachs and CPPIB to finalize the outstanding diligence items about the proposal. “These outstanding items are very focused and technical in nature and are taking place concurrently with final contract negotiations. All parties are devoting significant resources to finalizing terms as quickly as possible,” the SVG news release said.