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Sarah Kim

Deal Model

Meridian Capital Partners III — LP Secondary Transfer · Q3 2024

Extracted Inputs

Pre-filled by Omega from ingested documents

ΩOmega extracted
Confidence:HighMediumLow23 fields extracted
Management Fee1.5% on committed capital (declining to 1.25% post-investment period)
LPA §4.1
Carried Interest20% above 8% preferred return
LPA §5.2
GP Commitment1.0% of fund size ($12M)
LPA §3.4
Hurdle Rate8% preferred return (non-compounding)
LPA §5.1
Catch-Up100% GP catch-up to 20%
LPA §5.3
Waterfall TypeEuropean (whole-fund)
LPA §5.4
ClawbackYes, joint and several
LPA §5.8
ROFR30-day exercise window
LPA §9.2
GP ConsentRequired, reasonableness standard
LPA §9.1
Transferee QualificationsQualified purchaser required
LPA §9.3
MFNApplicable to fees only
Side Letter #2 §3
Current NAV$847M
Cap Account Q3 2024
Called Capital$1,092M (91% of $1,200M commitment)
Cap Account Q3 2024
Distributions$603M
Cap Account Q3 2024
TVPI1.80x
Cap Account Q3 2024
DPI0.55x
Cap Account Q3 2024
RVPI1.25x
Cap Account Q3 2024
Unfunded$108M
Cap Account Q3 2024
Vintage / Final Close2014 / Dec 2014
LPA §2.1
# Portfolio Companies12 active
Portfolio Report Q3 2024
Top 3 by NAVTechCo ($124M), MedDevice ($98M), IndustrialCo ($87M)
Portfolio Report
Sector ConcentrationTechnology 38%, Healthcare 22%, Industrials 18%
Portfolio Report
GeographyNorth America 85%, Europe 15%
Portfolio Report

Source Documents

Limited Partnership Agreement147 ppParsed
Capital Account Statement Q3 202418 ppParsed
Portfolio Report Q3 202434 ppParsed
Side Letter #28 ppPartial
01

Bid Pricing

Adjust sliders to model scenarios
InputExtractedAdjust
Current NAV$847M
Discount to NAV18.3%
10%30%
Unfunded Haircut$12M
$0$30M
Implied Bid Price$680M
02

Return Analysis

Gross IRR · 3-yr hold · entry discount × exit NAV growth
Exit NAV Growth15%18.3% ★22%
0%5.6%7.0%8.6%
+10%9.0%10.4%12.1%
+20%12.2%13.7%15.4%

★ Base case discount · Values shown as gross IRR, pre-fees

03

LPA Impact on Returns

Extracted from LPA & Side Letters
European waterfallFavorable — full return of capital before carry
Favorable
GP catch-up100% catch-up reduces near-term LP distributions
Moderate
Unfunded ($108M)Drag — reduces effective entry NAV by ~1.4%
Moderate
ROFR30-day window — manageable transfer timeline
Favorable
GP ConsentRequired — add 2-4 weeks to close timeline
Moderate
04

Comparable Transactions

Q2–Q4 2024 closed · LP secondaries
Fund NameVintageStrategyNAVDiscountDate
Apex Buyout Partners IV2014Buyout$820M19.2%Q3 2024
Bridgecroft Capital II2015Buyout$710M17.5%Q3 2024
Vantage Partners III2013Buyout$905M21.0%Q2 2024
Summit Mid-Market Fund V2015Growth Equity$640M16.8%Q3 2024
Crescent Capital Partners VI2014Buyout$890M18.9%Q3 2024
Meridian Capital Partners III ← Subject2014Buyout$847M18.3%Base case