Charollais provides capital increases to Private Equity investors with already-invested portfolios that need additional cash for recapitalizations or new opportunities. We invest the new cash through a “Preferred Capital” structure.
Generally, these transactions are led by a GP or portfolio owner, and occur when the portfolio assets in an older fund have better opportunities to build than to exit. The new capital invested by Charollais provides GPs with the ability to seize that potential growth.
We have a particular expertise in the seamless structuring of capital increases, and can complete the transaction without disrupting existing LP relationships, or interfering with ongoing portfolio management relationships.
Charollais can also structure a hybrid deal, in which some of the new capital is used for distributions to existing LPs in need of liquidity, and the remainder of the new capital is used to seize opportunities that have arisen in the portfolio.
Although we will consider all portfolios of illiquid assets, our focus is on buyout and growth funds. From time to time, if requested by the GP, Charollais can also take over some of the management responsibilities for select assets with the portfolio.