UK private equity house Inflexion, former owner of businesses such as Jack Wills and On the Beach, is beating Wall Street giants to run as one of the world's most in-demand buyout funds.
Stakes in the firm's 2010 fund were being flogged at an average of 124 per cent of the fund's net asset value on the secondary market, according to research from marketplace Palico.
The secondary market allows investors in private equity funds, who are generally large institutions such as pension funds, to sell their stakes to other interested parties before the fund has sold all its investments and returned the capital to investors. They may choose to do this if they need liquidity or, in the case of a poorly performing fund, they think they should cut their losses before the investments lose even more value.
The 124 per cent premium which the Inflexion fund is selling at, based on deals made over the last six months, shows investors are confident it will make them a strong return.
There was another UK-based fund in the top 10 most in-demand vehicles, the fifth from Dr Martens' owner Permira, though most of the names were well-known US giants.
|Fund||Price it's selling at, relative to the value of its assets||Country of headquarters|
|Inflexion 2010 Buyout Fund||124 per cent||UK|
|CVC European Equity Partners V||115 per cent||Luxembourg|
|Summit Partners Growth Equity VIII||110 per cent||US|
|Abry Partners VII||109 per cent||US|
|Advent Global Private Equity VII||107 per cent||US|
|Wayzata Investment Partners II||106 per cent||US|
|Apollo Investment Fund VII||104 per cent||US|
|New Horizon III||103 per cent||Hong Kong|
|Permira V||102 per cent||UK|
|TPG Partners VI||101 per cent||UK|