Stafford’s successful takeover of a $259m timber fund suggests most investors value a guaranteed exit today more than higher promised gains tomorrow.
The secondaries firm expects to receive more acceptances of its hostile bid for the $259m timber vehicle after a majority of shareholders approved it last week.
Stafford Capital has lodged a $244m hostile bid for Phaunos, the timber fund it used to manage. By refusing to say what it thinks of it, the vehicle’s board may be gunning for a higher price.
Committing to a closed-end fund takes effort and time. So why would LPs ever want to exit a vehicle before the end of its term? We ask Stephen Addicott, a timberland partner at Stafford Capital Partners.
Agri and timberland saw the largest growth in transaction volume in secondaries last year, and now buyers are bracing themselves for a rise in opportunities.