Potential benefits of secondaries
A key potential benefit of a private equity strategy focused on secondaries is its potential to provide an enhanced liquidity profile compared to a primary-focused strategy. Because secondary investors enter after the investment period is complete, the underlying portfolio is much closer to the point of realization. This typically allows investors to mitigate the J-curve and shorten the duration of their investment.
Pomona enhanced liquidity
Pomona typically purchases seasoned funds well into their 10-year life cycle whose commitments are 70–90% called. Pomona manages the Pomona Investment Fund (PIF) portfolio to receive cash distributions as the more mature assets are realized, while also adding younger assets to the portfolio that are expected to enter the growth phase. This maturity profile has led to an enhanced liquidity profile and, in our view, puts PIF in a strong position to comfortably meet its outstanding commitments and to nimbly respond to new investment opportunities.
27% Average annual portfolio liquidity1 (as % of NAV)
8% Average annual distribution2,3 to shareholders (as % of NAV)
Notable liquidity events
Below is a list of articles that discuss companies that were recently liquidated from the fund. Please refer to the recent headlines and corresponding links below for more information on these liquidity events.
Goldman Sachs set to pay €2 billion for Dutch pharma firm Synthon International
Goldman Sachs’ asset arm acquired the Dutch pharmaceutical company Synthon International for 2 billion euros.
Synthon is known for making complex generic medicines. The company’s head office is in Nijmegen. It also has locations in Argentina, Chile, the Czech Republic, South Korea, Mexico, and Spain. The company employs more than 1,500 people worldwide, including around 200 people in the Netherlands.
Francisco Partners to Acquire Quorum Software from Thoma Bravo
Francisco Partners agreed to acquire Quorum Software, a leading provider of energy software worldwide, from Thoma Bravo.
For over 20 years, Quorum has been a software provider for digital transformation in the energy industry, powering growth and profitability for energy operators by connecting people, workflows, and systems with decision-ready data. The Company serves as a trusted partner to energy customers who rely on its expertise and applications to successfully navigate the energy transition and deliver value across upstream, midstream, and downstream sectors. Quorum today serves over 1,500 customers, ranging from emerging operators to global supermajors and NOCs, across 50 energy producing countries. This transaction will position Quorum to capitalize on the momentum in global energy markets and increased demand for its platform.
Quorum grew exponentially under Thoma Bravo’s ownership, completing several strategic deals, including a merger with Aucerna and a carve-out of Energy Components, to cement its position as the largest global energy software provider with the broadest portfolio of solutions across the energy value chain.
Corsair Completes Sale of eurochange to The Western Union Company, Finalizes Exit from NoteMachine
Corsair, a financial services investor focused on payments, software and business services, announced it has completed the sale of eurochange, formerly a subsidiary of Corsair portfolio company NoteMachine and one of the leading high street retailers of travel money in the United Kingdom, to a subsidiary of The Western Union Company. Following the October 2022 disposal of NoteMachine’s UK ATM and Testlink divisions to the Brink’s Company, the sale of eurochange represents the full exit of Corsair’s position in this investment.
Since the acquisition of eurochange, it has become a leading high street retailer of travel money, growing the store estate from 96 locations to over 230. This has been supported by new and expanded partnerships with leading UK retailers and financial institutions including Morrisons and NatWest.
IFS, a provider of cloud enterprise software and Industrial AI applications, announced it has achieved a valuation of over EUR 15 billion following a significant pivot to AI-driven growth. The valuation comes as Hg increases its stake to become a co-control shareholder alongside EQT, with TA Associates remaining as minority shareholder.
The transaction follows many successful years of growth for IFS, delivering more than EUR 1 billion in ARR (“annual recurring revenue”) last year. Total revenue for 2024 was over EUR 1.2 billion, with some of the world’s largest industrial companies choosing IFS over legacy vendors. Demand for IFS’s industrial AI capabilities has increased significantly over the past 12 months as organizations across IFS’s focus industries of Aerospace & Defense, Engineering & Construction, Energy & Utilities, Manufacturing, Telco and Service, continue to realize the rapid and transformative value that IFS.ai delivers. IFS will continue to expand its capabilities with the industrial application of generative and agentic AI, so that customers can automate workflows, improve efficiency and deliver amazing moments of service to their own customers.
Over the past year, IFS added 350 new customers including Exelon who adopted IFS to streamline asset maintenance across its energy grid, Rolls-Royce who is using IFS to transform service delivery of its Power Systems business, and Total Energies who is deploying IFS as the single platform for management and servicing of its global operated asset portfolio. Moreover, an increasing number of large businesses are moving to IFS which is reflected in the average deal size of IFS’s largest customers increasing by 64% year-on-year.
Honeywell buys Sundyne in $2.16bn deal
U.S. technology and engineering company Honeywell has agreed to buy Sundyne from private equity firm Warburg Pincus for $2.16bn in an all-cash deal.
Sundyne, headquartered in Arvada, Colorado with additional locations around the globe, specializes in the design, manufacturing and aftermarket support of highly engineered pumps and gas compressors used in process industries.
The addition of Sundyne’s differentiated equipment will boost Honeywell’s Energy and Sustainability Solutions (ESS) business, and marks another key industrial move following its $1.81bn purchase of Air Products’ liquefied natural gas (LNG) process technology and equipment business, which was completed last September.
Risk of investing Discussed below are the investments generally made by Investment Funds and the principal risks that the Adviser and the Fund believe are associated with those investments and with direct investments in operating companies. These risks will, in turn, have an effect on the Fund. In response to adverse market, economic or political conditions, the Fund may invest in investment grade fixed income securities, money market instruments and affiliated or unaffiliated money market funds or may hold cash or cash equivalents for liquidity or defensive purposes, pending investment in longer-term opportunities. In addition, the Fund may also make these types of investments pending the investment of assets in Investment Funds and Co-Investment Opportunities or to maintain the liquidity necessary to effect repurchases of Shares. When the Fund takes a defensive position or otherwise makes these types of investments, it may not achieve its investment objective. The value of the Fund’s total net assets is expected to fluctuate in response to fluctuations in the value of the Investment Funds, direct investments and other assets in which the Fund invests. An investment in the Fund involves a high degree of risk, including the risk that the Shareholder’s entire investment may be lost. The Fund’s performance depends upon the Adviser’s selection of Investment Funds and direct investments in operating companies, the allocation of offering proceeds thereto, and the performance of the Investment Funds, direct investments, and other assets. The Investment Funds’ investment activities and investments in operating companies involve the risks associated with private equity investments generally. Risks include adverse changes in national or international economic conditions, adverse local market conditions, the financial conditions of portfolio companies, changes in the availability or terms of financing, changes in interest rates, exchange rates, corporate tax rates and other operating expenses, environmental laws and regulations, and other governmental rules and fiscal policies, energy prices, changes in the relative popularity of certain industries or the availability of purchasers to acquire companies, and dependence on cash flow, as well as acts of God, uninsurable losses, war, terrorism, earthquakes, hurricanes or floods and other factors which are beyond the control of the Fund or the Investment Funds. Unexpected volatility or lack of liquidity, such as the general market conditions that prevailed in 2008, could impair the Fund’s performance and result in its suffering losses. The value of the Fund’s total net assets is expected to fluctuate. To the extent that the Fund’s portfolio is concentrated in securities of a single issuer or issuers in a single sector, the investment risk may be increased. The Fund’s or an Investment Fund’s use of leverage is likely to cause the Fund’s average net assets to appreciate or depreciate at a greater rate than if leverage were not used. The Fund is a non-diversified, closed-end management investment company with limited performance history that a Shareholder can use to evaluate the Fund’s investment performance. The Fund may be unable to raise substantial capital, which could result in the Fund being unable to structure its investment portfolio as anticipated, and the returns achieved on these investments may be reduced as a result of allocating all of the Fund’s expenses over a smaller asset base. The initial operating expenses for a new fund, including start-up costs, which may be significant, may be higher than the expenses of an established fund. The Investment Funds may, in some cases, be newly organized with limited operating histories upon which to evaluate their performance. As such, the ability of the Adviser to evaluate past performance or to validate the investment strategies of such Investment Funds will be limited. In addition, the Adviser has not previously managed the assets of a closed-end registered investment company. Closed-End Fund; Liquidity Risks. The Fund is a non-diversified closed-end management investment company designed principally for long-term investors and is not intended to be a trading vehicle. An investor should not invest in the Fund if the investor needs a liquid investment. Closed-end funds differ from open-end management investment companies (commonly known as mutual funds) in that investors in a closed-end fund do not have the right to redeem their shares on a daily basis at a price based on net asset value. |