On September 10, 2019, Auldbrass Partners (“AP”) made the seventh investment from its latest $185.6 million Secondary Opportunity Fund II*. The Fund committed $5mm to WP AUSA, L.P. a Warburg Pincus-managed continuation fund formed to acquire shares of Allied Universal (“AU”) from Warburg Pincus Fund XI, L.P. and a group of minority investors. AU is a privately-owned security solutions company that provides manned security guards, technology integration, and consulting services. Despite its size, AU is projected to grow 15% through a combination of organic growth and tuck-in acquisitions.
AP believes the company’s dominant market position, steady growth and roll-up acquisition strategy provide significant upside potential. The AP base case is expected to yield a gross MoIC of 2.09x (25.6% IRR).
This is the third GP-led secondary that AP has led or participated in.
* In April of 2019, AP completed the final close for Secondary Opportunity Fund II at $185.6 million, which includes $92.9 million of co-investments.