May liquidity events related to portfolio companies in which PIF invests through its private equity holdings.
Realized distributions turn paper gains into cash that can be redeployed into new investments to drive future returns. Pomona Investment Fund (PIF) is built around this dynamic.
By purchasing fund interests later in their life cycles, PIF focuses on investments with greater visibility into near-term return of capital. As distributions are received, that capital is recycled into new opportunities.
Below, we highlight select recent exit transactions from PIF, illustrating why liquidity matters in private equity investing. (Learn more about the importance of liquidity)
Distributions as a percent of total return1
PIF: 54%
Peer average: 31%
American Securities Sells MW Components to Rosebank Industries
U.S. private equity firm American Securities LLC announced the completion of the sale of MW Components, a manufacturer of highly engineered specialty fasteners, springs, and precision metal components, to Rosebank Industries plc, in a transaction valued at approximately $950 million.
Headquartered in Charlotte, North Carolina, MW Components serves customers across aerospace & defense, electronics, semiconductors, medical, energy, agriculture, and other diversified industrial end markets. Since American Securities’ investment in 2017, the company has transformed through a combination of strategic acquisitions, operational enhancements, and investments in talent, equipment, and technology.
During American Securities’ ownership, MW Components significantly expanded its exposure to attractive, high-growth end markets including aerospace & defense, electronics, and semiconductors, while also strengthening its digital and e-commerce capabilities through the development of its proprietary “SNAP” software platform to facilitate rapid quoting activity. In addition, the company completed nine strategic add-on acquisitions that broadened its product portfolio, expanded manufacturing capabilities, and enhanced commercial reach across North America. These efforts supported the evolution of MW Components into a scaled platform operating across three divisions: Fasteners, Springs, and Precision Components.
KKR to acquire Nothing Bundt Cakes for over $2 billion
U.S. private equity firm KKR has struck a deal to acquire bakery chain Nothing Bundt Cakes from Roark Capital for over $2 billion, including debt.
The bakery was launched in 1997 and sells hand-crafted bundt cakes in a variety of flavors and sizes. It was acquired by Roark in 2021. Roark was running a sale process for the bakery chain with investment banks North Point and Bank of America.
Nothing Bundt Cakes, which operates more than 500 bakeries across the U.S. and Canada, expects to generate around $120 million in earnings before interest, taxes, depreciation, and amortization this year. The deal follows Atlanta, Georgia-based Roark’s acquisitions of Dave’s Hot Chicken last year and Subway in 2023.
Norwest Equity Partners Announces Sale of Thibaut to Quad-C Management
Norwest Equity Partners (NEP), a middle-market investment firm, announced the sale of Thibaut, a designer and distributor of luxury wallcoverings, fabrics, rugs, and furniture, to Quad-C Management, Inc.
NEP partnered with Thibaut in 2021 to support the Company’s next phase of growth, building on its strong heritage as a trade-only brand in the home and interiors market. During NEP’s ownership, the company accelerated its growth trajectory through a combination of organic initiatives and strategic acquisitions, strengthening its position as a multi-brand platform.
Working in close partnership with management, NEP supported Thibaut in scaling the business while staying true to its design-centric model. The Company continued its exceptional product innovation, expanded its go-to-market capabilities via direct channels, and invested in systems and operations to support continued growth and improve the client experience. Thibaut also advanced its multi-brand strategy through the acquisition and integration of complementary brands, including Rosemary Hallgarten and Coraggio, broadening its reach across the designer community. The investment in Thibaut reflects NEP’s continued focus on design-led brands within the home and interiors sector, where the firm sees strong opportunities to build differentiated, multi-brand platforms with long-term growth potential.
iCapital Acquires Hexure to Create the Industry’s First End-to-End Annuity and Insurance Technology Platform
iCapital, a global fintech company, announced that it has entered into a definitive agreement to acquire Hexure, a provider of digital and AI-powered sales automation solutions for insurance, financial services, and wealth management. This acquisition advances iCapital’s strategy to create the industry’s first truly end-to-end annuity and insurance technology platform—natively connected to iCapital’s alternatives and structured investments platform—delivering a single operating system that supports the full lifecycle, from discovery and education through order entry and post-sale servicing.
The insurance and alternatives markets are increasingly converging, reshaping capital access and the delivery of investment solutions. Carriers, asset managers, and distributors are working more closely together to offer alternative strategies through insurance-based structures that help financial advisors focus on core client needs, including retirement income, tax efficiency, and long-term diversification. Technology is central to enabling this collaboration at scale, supporting education, sales, compliance, and post-sale servicing across the full lifecycle.
Hexure’s products, teams, and partnerships will continue to serve carriers and distributors, supported by iCapital’s broader platform and resources. For customers of both companies, the combination simplifies how insurance and investment products are accessed and managed through a more connected platform, while maintaining an open-architecture approach to third-party solutions and partner flexibility across the ecosystem.
26North Acquires Intermedia In Major Shakeup of Cloud Comms Market
26North Partners LP acquired Intermedia Intelligent Communications from Madison Dearborn Partners. Intermedia is a player in the AI-powered cloud communications, customer experience, and collaboration space, with more than $430 million in annual recurring revenue and a 20% year-over-year growth rate in its core communications business. The platform currently supports over 150,000 business customers globally through a network of more than 7,500 channel partners.
The transaction, expected to close in the second quarter of 2026, will see Intermedia CEO Michael Gold and the current management team remain as investors and operators in the business. This continuity is designed to maintain operational excellence while 26North deploys its dedicated “Alpha Creation Team” to accelerate product development and expand global distribution channels.
This acquisition highlights a strategic trend within the broader tech market. The industry is currently navigating a rapidly accelerating AI ecosystem, requiring substantial capital to keep pace with the sprawling research and development budgets of megavendors like Microsoft and Cisco. Private equity firms are increasingly stepping in to fund this innovation.
Rather than engaging in a costly direct-sales competition against legacy tech giants, Intermedia has unlocked the unique power of the channel. Through its Customer Ownership Reseller approach, the company empowers managed service providers and telcos to white-label its entire cloud suite. This effectively turns thousands of regional IT providers into a decentralized, deeply invested network that owns the end-customer relationship in its entirety, creating a resilient, highly scalable business model.
Types of liquidity events
- Continuation vehicle: A PE firm extends its holding period in a portfolio company through a new fund.
- IPO: A privately held company lists on a public exchange, converting the PE firm’s stake into publicly traded shares
- Recapitalization: A portfolio company issues debt to pay a dividend to the PE firm, generating returns prior to exit.
- Secondary sale: A PE firm sells its stake in a company to another PE firm.
- Strategic acquisition: Another company acquires the portfolio company, typically at a premium that reflects its strategic value.
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. |