Goldman Sachs in talks to form rival club for Adevinta debt

Ryan Hesketh
+Fin Strathern

9 October 2023•2 min read

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Goldman Sachs' private credit arm is assembling a club that includes CVC and Park Square to take on a potential €4bn unitranche debt deal for Adevinta, market sources told 9fin. Details of the club are yet to be decided and the talks are in a preliminary stage, sources said, and more partners may still be added.

GIC is part of a separate club being put together by deal sponsors Blackstone and Permira, 9fin reported, to rival Goldman’s offer.

“It’s a huge ticket, that’s undeniable,” one person familiar with the matter said. “Goldman’s wanting to work with people it has a proven track record with, individuals it knows it can rely on.”

The potential investor club includes members that backed the £1.25bn-equivalent financing package behind EQT’s acquisition of UK-listed pharmaceuticals company Dechra in June. A fund manager not involved in that deal said it was the critical moment that “crystallised” this collection of lenders into a coherent whole.

“The funds had a history of collaboration before Dechra, but after that they developed serious synergies and were ready to jump into action at any time,” the fund manager said. “I’m not at all surprised they’re getting the band back together.”

Blackstone and Permira lead a consortium that has made a “non-binding indicative proposal” regarding a potential offer for Adevinta, a classified-ads company. 9fin previously reported that Goldman Sachs’ private credit arm is looking to assemble a prospective €4bn private debt package for the buyout.

The sponsors are running a dual-track process, with syndicated and private debt bids. However, if the debt goes to direct lenders, it would become Europe’s largest ever private credit transaction.

Goldman Sachs and CVC declined to comment on the club formation. Park Square did not respond to a request for comment.