Hildred Capital – a healthcare-focused private equity firm that partners with middle-market companies – announced the closing of a multi-asset continuation fund led by Lexington Partners and a leading group of limited partners. Lexington is one of the world’s largest managers of secondary private equity and co-investment funds.
The continuation fund Hildred Perennial Partners I, L.P., was established to buy two healthcare consumer product-focused companies from Hildred’s first and second funds: Hyland’s Naturals and Crown Laboratories. This $750 million continuation fund includes significant unfunded capital for helping drive organic growth initiatives and strategic acquisitions at these companies.
The continuation fund was structured to ensure a strong alignment of interests between the general partnership and limited partners. Hildred’s co-founders rolled over 100% of their economic interests into the continuation fund. The limited partners were also given the option to roll all their interests into the continuation fund, sell all their interests, or sell a portion of them and roll a portion into the continuation fund.
Kirkland & Ellis and Lowenstein Sandler provided legal counsel for Hildred, and Evercore was the firm’s exclusive financial advisor.
KEY QUOTES:
“We are very pleased to announce the successful close of this oversubscribed continuation fund in what continues to be a challenging fundraising environment. We are grateful for the enthusiastic support we have received from Lexington Partners and our esteemed group of limited partners, and believe their partnership speaks volumes about the trust and confidence they have in our firm. We are committed to delivering exceptional results on their behalf.”
– David Solomon, Co-Founder and Managing Partner of Hildred
“We are proud of the success that has been realized for each of Crown and Hyland’s under Hildred’s ownership to date. This transaction provides both companies with additional committed capital to execute organic growth initiatives, to pursue strategic acquisitions, and to continue to drive operating leverage. The continuation fund is also a win-win for investors in that it has generated significant liquidity and attractive returns for selling limited partners while also providing new investors with the opportunity to participate over time in the appreciation of these strong and growing companies.”
– Andrew Goldman, Co-Founder and Managing Partner of Hildred
