CalPERS backs $300m Monograms’ $300m Mountaintop continuation deal
The California Public Employees’ Retirement System is among the institutional investors backing a roughly $300m continuation vehicle that will allow private equity firm Monogram Capital Partners to retain ownership of beverage manufacturer Mountaintop Beverage, according to a report by Bloomberg.
CalPERS, a major California pension fund, is among the investors supporting a $300 million deal that allows private equity firm Monogram Capital Partners to keep control of beverage maker Mountaintop Beverage. Bloomberg reported the transaction, which illustrates how large pension funds are increasingly involved in private equity secondaries, particularly continuation vehicles.
Mountaintop manufactures shelf-stable beverages for popular brands, including coffee, tea, and dairy products. The company has been incorporated into a continuation vehicle that provides extra funding for growth and enables Monogram's second private equity investors to realize a large share of their investment. Monogram co-founder Jared Stein explained that the deal lets the firm secure a significant profit for the fund and rebuild its resources for future expansion.
Sources said that Apollo Global Management's S3 secondaries business led the continuation vehicle, along with Partners Capital and the California Institute of Technology (Caltech). The institutions did not comment immediately. The deal was done at net asset value with no discount, delivering a four-fold return of capital to the limited partners in Monogram's fund, according to people familiar with the terms.
Monogram specializes in consumer businesses in the lower middle market, and the Mountaintop transaction gives the firm extra capital and time to grow while providing liquidity to investors from its initial fund.
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