CONTACT US  

Multi-Sponsor Co-Investment Strategy

Summary

  • CPE I, a $200 million 2008 vintage fund, and CPE II, a $242 million 2013 vintage fund, are U.S. focused private equity funds that make non-control investments
    • Both funds, no longer open to subscription, are managed by Caspian Private Equity, LLC (“Caspian”) and follow similar investment strategies.
  • Investment strategy
    • Opportunistic investments
    • Seek to diversify across industry and investment stage(1)
    • Primary focus on small and middle market buyouts
  • Portfolio construction
    • Targeted deal size: $10 to $15 million
    • Targeted number of investments per portfolio: 20 to 25
  • Key characteristics of portfolio companies include:
    • Strong management teams with substantial expertise and depth
    • Solid industry and company fundamentals
    • Strong growth outlook
    • Sustainable competitive advantage, market share and relatively higher barriers to entry
    • Relatively conservative leverage and reasonable acquisition multiple
    • Range of exit options
  • Caspian’s management team seeks to be strategically involved with portfolio companies:
    • Evaluating expansion opportunities
    • Evaluating potential cross-opportunities with other portfolio companies
    • Helping with capital structure
    • Potential Board participation

Management Team and Shareholders

  • CPE I and CPE II are managed by the same highly experienced management and investment teams
    • Investment team led by Nader Motamedy (30 years of experience in the investment industry) and Nitin Gupta (19 years of experience with 17 years of direct private equity experience)
    • Investment team of 7 professionals
    • CPE I and CPE II benefit from the strong deal flow sourced from the personal network of Caspian investment professionals and Advisory Board members, Caspian’s relationships, and the Natixis network.
  • Shareholders of Caspian, the investment manager of CPE I and CPE II
    • Natixis Global Asset Management (“NGAM”) owns 55%(2) of Caspian; the remainder is owned by the partners of Caspian through Caspian Management Holding, LLC;
    • Caspian benefits significantly from the support provided by its institutional partner, NGAM, and parent Natixis SA.

Key Terms

CPE I CPE II
Actual Size $200 million of total commitments $242 million of total commitments
GP and affiliates commitment 32% of total commitments, including 30.05% from Natixis affiliates 4% of the total commitments, including 2.50% from Natixis affiliates
First close June 24, 2008 November 27, 2012
Last close April 15, 2011 December 31, 2014
Investment period Ending on April 15, 2015 Ending on November 27, 2018
Term 10 years from the final closing date plus two additional 1-year periods 10 years from the final closing date plus two additional 1-year periods
Legal counsel Ropes & Gray LLP Ropes & Gray LLP
Auditor PricewaterhouseCoopers PricewaterhouseCoopers

Notes

  1. References to the portfolio's diversification is not intended to imply that the portfolio will be diversified for purposes of, and as defined in, the Investment Company Act of 1940, as amended.
  2. Approximate economic interest in operating income.