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Double Palladium recap sees $58m returned to Fund III investors

25 Jul 2013

money dollar lend borrowUS Hispanic marketplace-focused Palladium Equity Partners has returned $58m to investors in its third fund by recapitalising portfolio companies ABRA Auto Body & Glass and Teasdale Quality Foods.

Palladium’s recap of vehicle damage repair service ABRA will see it return about $24m, or 44 per cent of invested capital, to LPs, while the $34m payback from Teasdale represents a 1.1-times return in less than two years.

The firm made ten add-on acquisitions for ABRA since it first invested in October 2011, increasing its EBITDA by more than 80 per cent.

Teasdale, meanwhile, has nearly tripled its own EBITDA under Palladium control began in September of the same year.

Palladium managing partner Marcos Rodriguez said, “Both ABRA and Teasdale exemplify the characteristics that Palladium seeks in its investments – strong and experienced management teams, market-leading positions, and compelling opportunities for growth.

“We are greatly pleased with the success we have achieved in working with ABRA and Teasdale, both of which are experiencing significant growth, and we look forward to continuing to press forward with them on the significant opportunities we see for them in the months and years ahead.”

In May it emerged Palladium Equity Partners was nearing the halfway point for its $800m-targeting fourth fund.

The firm has gathered $332m of commitments according to PEI, which cited sources familiar with the fundraise.

The vehicle held a first close of almost $200m shortly after launching last summer and has up to $100m more in pending commitment, with one PEI sources saying the fund must be closed by the end of the year.

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