Washington, D.C.-based ABS Capital completed a GP-led secondary transaction and first continuation fund centered around two of its portfolio companies, LabConnect and Viventium Software.
The transaction totaled approximately $200 million, according to sources familiar with the matter. GP-led deals are typically conducted near par, sources said. ABS officials said that fund investors were provided a choice to receive liquidity or continue their investment.
“The ABS Capital team is thrilled to partner with Kline Hill Partners and Five Arrows in supporting the continued growth of LabConnect and Viventium,” said ABS Managing Partner, Mike Avon. “We are extremely proud of both companies’ success so far, and of the attractive returns we have generated for our LPs. We believe there is significant future value in these assets.”
ABS has a track record over 30 years and in that time has invested more than $2.5 billion in about 130 companies across eight funds. The continuation deal supports the growth opportunity for both companies, providing additional time and capital for growth initiatives, while offering liquidity to existing limited partners.
LabConnect is a provider of global central laboratory services including routine and esoteric laboratory testing, kit building, sample management and tracking, biostorage and scientific support services for pharmaceutical and biotechnology companies and clinical research organizations (CRO). Viventium is a cloud-based payroll and human capital management solution, providing an exceptional user experience and insightful analytics for the health services markets, primarily home care agencies and skilled nursing facilities.
The transaction was capitalized by a consortium of new and existing ABS investors, who subscribed to a new partnership managed and controlled by ABS. The transaction was led by Kline Hill Partners and Five Arrows.
“This transaction reflects not only existing but also new investors’ strong conviction surrounding the continued growth potential of high-quality assets in the Healthcare and SaaS-based Human Capital Management spaces,” said Raudel Yanez, a managing director at Kline Hill Partners.
As for the $3 billion Kline Hill, it has been very active 2023 in what has been an attractive environment for GP-led deals, especially for buyers who are selective in acquiring trophy-assets often at discounted prices. Last year was a very busy one in the space too, as Alternatives Watch covered in an interview with the firm in mid-2022 when M&A and IPO market activity was dormant.
Since inception, Kline Hill has closed over 500 transactions.
At Five Arrows, the shared potential remains compelling. “The transaction embodies our strategy to support GPs and their portfolio companies in the next stage of value creation while helping to address liquidity, duration, and capital considerations. We were impressed by ABS’s thoughtful investment approach and have a shared belief that the assets are positioned for continued and sustainable growth,” said Brian Kolin, a managing director at Five Arrows.
Advisors
Harris Williams served as financial advisor, and Gunderson Dettmer served as legal advisor to ABS.
