Cebile Capital advises HPE Growth on signing of EUR160 million Continuation Fund for FinTech PPRO
11/06/2021 - 10:03am
HPE Growth, a leading European tech-growth capital investor signed a single-asset continuation vehicle for its HPE Fund I portfolio company PPRO that established itself as a globally leading cross-border payments infrastructure provider, powering international growth for payment service providers and platforms.
The transaction is expected to close in summer subject to obtaining the required regulatory approvals.
HPE Fund I invested in PPRO in 2014 and has since realised a revenue CAGR of +40 per cent. With HPE Fund I nearing the end of the fund’s life time, the transaction provides extended duration to the fund’s investment in PPRO, while offering existing limited partners the opportunity to obtain liquidity or to benefit from further value creation by participating in the single asset continuation vehicle.
In addition to existing PPRO investors including PayPal, Citi, JPMorgan, Sprints Capital, Eurazeo Growth and Wellington Management, the transaction added several blue-chip investors as indirect PPRO shareholders through HPE’s limited partners. Coller Capital and Adams Street Partners co-led the transaction and were joined by Pomona Capital and W Capital Partners in the syndicate.
Tim van Delden, Managing Partner at HPE, says: “We are delighted to partner with Coller Capital and Adams Street Partners for the next chapter in PPRO’s growth to further realise the company’s potential as it continues on its value creation path and becomes a global reference name in its space. The transaction is a very good outcome for our existing investors as it provides them with the option to realise a significant uplift or continue the journey with us as we take PPRO to the next level. The vote of confidence from the secondary market re-affirms our belief in the quality and growth potential of PPRO and its management team.”
Cebile Capital was the sole financial advisor to HPE Growth on the transaction. Proskauer and Stibbe acted as the legal counsels for HPE while Akin Gump acted as the legal counsel for Coller Capital and Adams Street Partners.
Sunaina Sinha Haldea, Managing Partner at Cebile, said "Cebile Capital is delighted to partner with a best-in-class GP like HPE to deliver a win-win-win solution for existing investors, new secondaries buyers and the financial sponsor. The winning combination in the secondaries market is a high-quality business like PPRO, that is managed by a top financial sponsor like HPE."
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