Goldman, CPPIB Said to Offer Investors Childs Fund Exit

Goldman Sachs Group Inc. and the Canada Pension Plan Investment Board are set to invest in holdings from a 2002 fund managed by J.W. Childs Associates LP in a deal valued at $1 billion, said three people with knowledge of the matter.

Buyout firm J.W. Childs will give existing investors an option to sell stakes in its $1.75 billion buyout fund to CPPIB, Canada’s second-biggest public pension manager, and Goldman Sachs’s asset-management unit, said the people, who asked not to be identified because the talks are private.

The transaction is expected to be valued at about $1 billion, the people said. The J.W. Childs fund holds stakes in five companies, including Sunny Delight Beverages Co., Mattress Firm Holding Corp. and retailer Brookstone, according to the buyout firm’s website.

The deal is the latest transaction in which private-equity managers are giving investors the chance to sell stakes or roll them into new vehicles. London-based Argan Capital began talks in January to sell holdings in the 425 million-euro ($583 million) fund it manages.

John W. Childs, 72, and Adam Suttin founded Boston-based J.W. Childs in 1995. The firm hasn’t raised a fund since 2002, abandoning efforts to raise another one in 2007, according to data compiled by Bloomberg.

Spokeswomen for Goldman Sachs and Toronto-based CPPIB declined to comment. A spokesman for J.W. Childs didn’t respond to e-mailed requests seeking comment.

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