San Francisco based-direct secondary investor Saints Capital has launched its fifth fund, according to regulatory filings. The vehicle, Saints Capital V LP, has closed on $99 million of a targeted $150 million, attracting limited partners such as Adams Street Partners, The Caisse de depot et placement du Quebec and HarbourVest Partners, through its Dover Street V secondary fund.
Saints Capital, which has additional offices in Europe and Asia, is a cross between a standard secondary buyer, which acquires private equity positions from limited partners, and a direct investor, since the firm will only buy private equity stakes in companies directly from GPs.
A typical deal for Saints would be its acquisition of Tenet Healthcare Corp.’s venture holdings, which occurred at the end of last year. Through the transaction, Tenet was able to liquidate its dormant venture portfolio while Saints reportedly acquired nine of the company’s 10 venture stakes in businesses such as expense management group Broadlane and ultrasound device maker Zonare Medical Systems.
While Saints bills itself as a direct secondary buyer, the firm will also invest on a primary basis. Most recently, the firm took part in a primary investment in WiMAX outfit NextWeb.
The firm says it is not industry focused, instead broadly targeting areas that have fallen out of favor, although Saints does identify the technology, healthcare, consumer and industrial sectors as areas in which it will make direct, special situations investments.
Saints is headed by managing directors Kenneth Sawyer, David Quinlivan, Amar Senan and Lilian Schackelford Murray. Sawyer, Senan and Murray all worked at the tech and healthcare focused investment bank Volpe Brown Whelan & Company prior to starting Saints, while Quinlivan came over from online insurance group Insweb, where he was a senior vice president.
The exclusive direct-secondary investor is not as common as its LP-focused cousin. In addition to Saints, groups such as W Capital Partners, PEI Corporate Ventures, Capital Strategy affiliate Morning Street Partners and Lake Street Capital are among those that help makeup the direct secondary market.