WEEKLY REVIEW 13 January 2013
Fundraising & IR Headlines Private equity fundraising climbs 13% ...................... 2 TCRS commits over $400m to private equity, venture capital funds ................................................................ 2 Morgan Stanley fund of funds arm pulls in $177m for new vehicle............................................................. 2 Fort Washington raises target for latest fund of funds ...................................................................................... 3
Kvamme’s Drive Capital gathers $224m towards $300m debut fund...................................................... 8 CapStreet Group raises nearly $250m for latest fund ...................................................................................... 9 Reservoir Capital collects $185m for debut energy and power vehicle ....................................................... 9 DFW Capital Partners outstrips $150m target in Fund IV final close ....................................................... 9
Fisher Lynch launches $100m venture fund ............ 3
CID Capital secures more than $150m for latest fund .................................................................................... 10
Apollo closes new mega-fund on $17.5bn................ 3
JP Morgan raises more than $140m for two funds10
Clayton Dubilier & Rice raises more than $4.5bn for latest fund .................................................................... 3
Corinthian Capital collects more than $100m for Fund II ........................................................................ 10
Vista seeks $3.5bn for technology buyout fund ....... 4
Ironbridge Equity continues rapid fundraise, collects more than $90m for second close .......................... 11
GI Partners expects to close latest fund on $2bn hard cap ................................................................................ 4 KKR eyes European distressed lending opportunity with $2bn fund close................................................... 4 Riverside closes latest fund on $1.5bn ..................... 5 Energy & Minerals Group raises $1.21bn for third fund............................................................................... 5 Ridgewood Energy closes second fund on $1.1bn... 5
Hispanic company-focused AUA Private Equity collects $64m towards debut fund ......................... 11 ff Venture Capital hits target zone in $52m fund close ........................................................................... 11 Tandem Capital hits $50m mark for third fund ..... 12 Capvis Equity Partners raises €720m for latest fund .................................................................................... 12
Starwood Capital Group beats target for latest fund ...................................................................................... 7
Bowmark Capital raises £375m for latest fund..... 12
Summit Partners beats target for second credit fund ...................................................................................... 7
August Equity Partners holds £200m hard cap final close for Fund III ........................................................ 13
Z Capital tops target for Fund II, eyes $750m hard cap ................................................................................ 7
Ambienta hits €200m for environmental private equity fund ................................................................. 13
Balfour Beatty nears $500m for debut infrastructure fund............................................................................... 7
Beechbrook commits 35 per cent of Fund II capital with three months of raise to go.............................. 14
M/C Partners picks up $176m for first fund since rebranding from venture to PE ................................... 8
Seventure Partners holds €62m first close for new fund ............................................................................ 14
KSL Capital raises $378.5m for first Credit Opportunities Fund ...................................................... 8
SUSI Partners holds €65m first close for new fund .................................................................................... 14
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Activa Capital holds first close for Fund III ............. 13
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Eastern Link Capital raises $330m fund ................ 15 STIC Investments raises more than $170m for new private equity fund .................................................... 15 Indiareit raises $161m for Indian real estate investment ................................................................. 15 Riverside secures $135m for second Asia-Pacific fund............................................................................. 15 Oversea-Chinese Banking Corp launches $100m domestic private equity fund .................................... 16 Japanese secondaries private equity firm WM Partners raises $50m ............................................... 16 Elevar Equity secures first commitments for $125m third fund.................................................................... 16 Israel’s StageOne Ventures back in market for $100m second fund.................................................. 16
Private equity fundraising climbs 13% Private equity firms raised more funds in 2013 than they did in the previous year, according to a recent report. Global private equity fundraising climbed 13 per cent year on year to $431bn in 2013, driven by an increase in capital raised for investment in developed economies. Funds closed last year secured the highest amount of capital in any year since the global financial crisis, Preqin said in its latest report. The previous high was set in 2008 when private equity firms tapped LPs for $688bn. Funds focused on Asia and other emerging economies saw a steep decline in fundraising levels, while vehicles focused on North America and Europe managed to attract more capital from LPs. The report showed that 59 per cent of investors said that Europe offers the best private equity investment opportunities in the current financial climate, while 54 per cent and 22 per cent had a favourable view of North America and Asia, respectively.
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TCRS commits over $400m to private equity, venture capital funds The Tennessee Consolidated Retirement System (TCRS) has made commitments of over $400m to several private equity and venture capital funds. The $38bn pension fund has approved commitments of $55m to EBF & Associates’ Merced Partners IV, $20m to OrbiMed Private Investments V and $75m to Olympus Growth Fund VI. It has also committed $60 million to Stone Point’s Trident VI fund, £40m to Vitruvian Investment Partnership II, $20m to Drive Capital Fund I and $75m to Ardian’s AXA Secondary Fund VI, according to PeHUB. TCRS expects to invest $500m in private equity funds this year, said the report. Last year head of TCRS Lamar Villere stepped down to manage capital at his family’s business. He served as the pension system’s private equity director since 2009 when the state’s legislature gave the green light to the fund investing in the asset class.
Morgan Stanley fund of funds arm pulls in $177m for new vehicle Morgan Stanley has pulled in more than $170m for its latest fund of funds just over 18 months after closing a series of predecessor vehicles with $1.3bn. AIP Private Markets Fund VI does not name a target in a US regulatory filing, which often understate the amount softcircled by private equity fundraisers. Morgan Stanley gathered about $720m for its fifth AIP fund in April 2012 and another $580m in related separate accounts, beating its initial $1.25bn target. The firm said it planned to invest across primary funds, co-investments and secondaries with the cash, targeting in less efficient market segments and managers with differentiated skill sets in the US, Western Europe and emerging private equity markets. Morgan Stanley’s fund of funds business previously closed a dedicated secondaries fund on $585m in May 2010.
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Fort Washington raises target for latest fund of funds Private equity firm Partners has raised the target for its latest fund of funds vehicle, AltAssets has learned. Fort Washington Private Equity Investors (FWPEI) VIII has secured $224.6m via two parallel vehicles, beating its initial $200m target, the firm revealed in a document filed with the US Securities and Exchange Commission. It said that the target for the vehicle has been increased to $250m from $200m previously. The Cincinnati-based firm will receive an annual management fee of $1m, the filings showed. FWPEI VIII secured its first commitment in December last year and did not have a placement agent, according to regulatory filings. FWPEI VIII follows the firm’s seventh fund of funds, which was launched with a $250m target in July 2010 and closed with commitments of $186m later that year. The sixth and fifth vehicles were closed with commitments of $170m and $135m in 2009 and 2006 respectively. In July this year AltAssets reported that Fort Washington launched its third secondaries fund with a $150m target. Fort Washington, which is a unit of insurance group Western & Southern, makes primary and secondary as well as coinvestment deals. The firm invests between $5m and $10m in funds with commitments of at least $200m and has backed vehicles managed by Carlyle, Great Hill and Shasta Ventures.
Fisher Lynch launches $100m venture fund Fund of funds manager Fisher Lynch Capital (FLC) is seeking $100m for its latest venture capital vehicle, AltAssets has learned. Fisher Lynch Venture Fund III does not have a placement agent and has yet to register its first commitment, the firm revealed in a document filed with the US Securities and Exchange Commission. FLC said top performing venture managers are difficult to access, but its strong relationships enable it to partner with “managers that have generated consistently compelling venture returns over several investment cycles”. The firm says it is sector agnostic, but information technology sectors make up a large majority of its venture portfolio with some exposure to healthcare and Copyright © AltAssets Limited.
cleantech. Its portfolio businesses include Clovis Oncology, RetailMeNot, LendingClub and Twitter.
Apollo closes new mega-fund on $17.5bn Private equity firm Apollo Global Management has closed its latest flagship fund on $17.5bn, making it the biggest vehicle raised since the financial crisis. Like its predecessors, Fund VIII will focus on distressed investments, corporate carve-outs and opportunistic buyouts. Apollo’s previous fund, which was closed on $14.7bn in 2008, has generated an annual gross IRR of 38 per cent. The firm said that it has committed $880m of additional capital to the new fund. Apollo chairman and CEO Leon Black said, “We are very grateful for the overwhelming support for Fund VIII, which includes significant commitments from a preeminent global investor base consisting of both longstanding existing limited partners as well as many new investors. Fund VIII benefited from the support of a diversified group of investors, including many public pensions, sovereign wealth funds, corporate pensions, endowments and foundations, funds of funds and high net worth investors.” Apollo kicked off the fundraise with a $12bn target a little over a year ago. In November last year Apollo bought healthcare-focused mid-market lender MidCap Financial.
Clayton Dubilier & Rice raises more than $4.5bn for latest fund Private equity major Clayton Dubilier & Rice is close to hitting the target for its latest fund, AltAssets can reveal. Clayton, Dubilier & Rice Fund (CDRF) IX has secured commitments of $4.57bn from 146 LPs, according to a document filed with the US Securities and Exchange Commission. HMC Itajuba and Leading Investment & Securities are acting as placement agents for the fund, which does not have a minimum commitment requirement for outside investors. The first commitment was registered in August last year, the filing showed. CDRF IX is targeting $5bn
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and reportedly held a first close of between $2.5bn and $3bn in July, while a document filed in August showed that the fund had raised $2.65bn.
GI Partners expects to close latest fund on $2bn hard cap
The firm’s previous fund was closed on $5bn in January 2010, falling short of its $7.5bn target. Clayton’s recent deals include the acquisition of a majority stake in Deere & Company’s landscape unit for around $300m and the buyout of Harsco Corporation’s infrastructure division via a joint venture with the industrial services group.
Private equity firm GI Partners has beaten the target for its latest fund, which is reportedly expected to close on its hard cap.
Vista seeks $3.5bn for technology buyout fund Technology-focused buyout firm Partners is looking to raise $3.5bn for its next fund, according to Bloomberg. Vista Equity Partners Fund V will have the same target as the firm’s prior vehicle, which closed in 2012. It also closed $1.1bn for an additional small-cap fund in November 2013, well above the firm’s starting target of $500m. The New Jersey State Investment Council had committed $100m to the fund. It is also a limited partner for the firm’s other vehicles and showed that the firm’s 2009-vintage vehicle was running a 2.4 multiple, while its 2012 fund recorded a 1.02x return. The firm’s 2012 fund was generating a 1.02 times multiple on invested capital as of Oct. 31, according to performance data from the New Jersey Division of Investment. Vista Equity’s $1.3 billion fund from 2008 was producing a 2.4 times multiple as of the same date, the data shows. Most recently the firm was said to be considering making an multi-billion dollar offer for business software group Compuware Corp. Earlier in the year Vista bought ACTIVE Network in a deal that valued the activity and participant management software company at around $1.05bn.
GI Partners Fund IV has secured commitments of $1.66bn from 12 LPs, the firm revealed in a document filed with US securities regulators. The fund, which was launched with a $1.5bn target in 2012, is expected to close on its $2bn hard cap before the end of the first quarter, according to Dow Jones, which cited a person with knowledge of the situation. UBS Securities, BofA Merrill Lynch and HSBC are acting as placement agents for the vehicle. GI’s previous fund was closed on $1.9bn in 2009, missing its $2.5bn target. It was generating an IRR of 15.1 per cent and a cash multiple of 1.41 as at the end of June last year, according to the Oregon Public Employees’ Retirement Fund. Despite the lower than hoped for size, GI Partners Fund III was 35 per cent bigger than the $1.45bn vehicle the firm raised four years earlier. New investors included the Florida Retirement System Trust Fund and Teachers’ Retirement System of the State of Illinois in the US, and Capital Dynamics and Partners Group in Europe.
KKR eyes European distressed lending opportunity with $2bn fund close US buyout giant KKR has held a $2bn final close on a new distressed lending fund targeting North American, European and Asian businesses. The firm’s co-head of special situations Jamie Weinstein told Bloomberg KKR saw most distressed debt and rescue lending opportunities in Europe, which is still suffering after-effects of the 2008 financial crisis. He said the Special Situations Fund had already invested about 30 per cent of its capital since it began raising in 2012. KKR collected $8.3bn for its latest flagship North American fund towards the end of last year, followed by completing a $1.5bn real estate fundraise. Last month distressed debt investor Monarch Alternative Capital reportedly launched an $850m-targeting third fund in a fundraise it expected to “go quickly”.
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The New York-based firm, which spun out of Quadrangle Group in 2008, expected to hold a first close in the first quarter of 2014 according to peHub.
invests between $150m and $400m in companies in the energy and minerals sector. Last year EMG teamed up with NYSE-listed natural gas developer MarkWest Energy Partners to launch a development joint venture.
Riverside closes latest fund on $1.5bn
The Utica Joint Venture is dedicated to the development of midstream infrastructure on behalf of natural gas producers operating throughout the liquids-rich Utica Shale formation in Ohio.
Private equity firm The Riverside Company has held a $1.5bn final close for its latest fund, exceeding its initial target by 50 per cent.
Ridgewood Energy closes second fund on $1.1bn
Riverside Capital Appreciation Fund VI, which follows a $1.17bn vehicle raised in 2009, is the largest raised by the firm in its 25 years of existence. The fund will invest in North American companies with enterprise values of up to $250m and EBITDA between $5m and $25m. Riverside said that its employees committed more than four per cent of the fund, which is the firm’s largest GP commitment amount to date. Riverside Co-CEO Béla Szigethy said, “The fundraising environment has gotten considerably tougher over the 25 years we’ve been in business. Investors are rightfully demanding and very selective about where they entrust their money, and we’re delighted to have earned that trust.” In August last year AltAssets reported that Riverside held a $1.48bn third close in July. The previous fund had achieved strong returns with the first four exits generating an IRR of 33 per cent, a source with knowledge of the matter told AltAssets. LPs that have backed the sixth fund include the Washington State Investment Board and the Los Angeles County Employees Retirement Association, which committed $150m and $100m, respectively.
Private equity firm Ridgewood Energy has reportedly exceeded the target for its second fund. Ridgewood Energy Oil & Gas Fund II has held a final close of $1.1bn, beating the $750m target and the initial hard cap of $1bn, said Dow Jones, citing a person close to the effort. The final close took place in December following a $450m first close in April, said the person. Ridgewood will use the fund to invest in drilling and developing projects in the Gulf of Mexico to add to its current portfolio of 16 producing properties and a further five under development. The report quoted an investor in the fund who said the firm’s partnership with Riverstone was one of the reason it felt secure with the investment in Fund II.
Energy & Minerals Group raises $1.21bn for third fund Energy-focused investment firm Energy & Minerals Group (EMG) has secured more than $1.2bn for its third fund. Energy & Minerals Group Fund III has received commitments of $1.21bn from 63 LPs, according to a document filed with the US Securities and Exchange Commission. Credit Suisse is acting as a placement agent for the fund, which does not have a minimum commitment requirement, the filing showed. The new vehicle follows EMG’s second fund, which was closed with commitments of $2.2bn in 2012. The firm Copyright © AltAssets Limited.
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Starwood Capital Group beats target for latest fund Starwood Capital Group has held a final close of $983m on its Starwood Energy Infrastructure Fund (SEIF) II, exceeding its $750m target and nearly reaching the $1bn hard cap. The fund, which was on the road for 12 months, will invest in wind, solar, natural gas and other power generation and highvoltage transmission assets, focusing in North America. It was backed by sovereign funds, pension plans, funds of funds, insurance companies and other institutional investors. SEIF II follows a $433m energy infrastructure fund closed in June 2008, which has so far received distributions of $287m, the firm said in a statement.
School Employees’ Retirement System of Pennsylvania. Summit’s second credit fund follows the first vehicle, which was closed on $520m in August 2012. The fund makes credit investments in profitable companies with proven business models, a record of stable growth, and the leadership capable of sustaining that growth, the firm said.
Z Capital tops target for Fund II, eyes $750m hard cap Special situations private equity firm Z Capital Partners has reportedly beaten its target for its second fund and is eyeing its $750m hard cap.
Starwood CEO Brad Nordholm said, “We are focused on a market that has an annual opportunity set approaching $100 billion in the US and Canada. Currently low domestic natural gas prices and the lower cost of proven renewable energy technologies have created a rich environment for Starwood Energy Group. We believe that our ability to timely deploy capital and expertise by our team of energy industry experts that has doubled in size over the last five years makes Starwood Energy Group a reliable and desirable partner for both sellers and developers. SEIF II enables us to continue sourcing and executing on a middle-market strategy that has yielded favorable results, while also strengthening our coinvestment capability.”
The Chicago-based firm set up by Black Diamond Capital cofounder James Zenni, hoped to gather $500m when it was launched in December 2012. It has now collected more than $600m of commitments according to peHub, which cited two people with knowledge of the situation. AltAssets revealed in August 2012 that the firm had hired Jefferies to place the fund, which followed the final close of its debut vehicle on $250m in June the previous year. The vehicle will continue its predecessor’s strategy of investing in distressed debt, operational turnarounds and special situation opportunities in the mid-market across industries that in the past have included consumer, steel, agricultural, gaming, leisure and automotive.
In April last year Starwood closed its Starwood Distressed Opportunity Fund IX on its $4.2bn hard cap/
Z Capital was founded in 2006 after Zenni left Black Diamond with six of its associates. The firm has made a number of high-profile investments to date, including casino operator Affinity Gaming and former Sun Capital portfolio business Real Mex Restaurants.
Summit Partners beats target for second credit fund Private equity firm Summit Partners has surpassed the target for its second credit fund. Summit Partners Credit Fund II has raised $761.5m from 30 investors, beating its initial $750m target, according to a document filed with the US Securities and Exchange Commission. The firm did not specify whether the fund has held a final close. The fund, which does not have a placement agent, registered its first commitment in October last year, the filing showed. At that time, AltAssets reported that the vehicle had received a $200m commitment from the Public Copyright © AltAssets Limited.
Balfour Beatty nears $500m for debut infrastructure fund The private equity arm of international infrastructure group Balfour Beatty has pulled in at least $469m for its inaugural energy, utilities and transport fund, AltAssets has learned. The firm has picked up the capital from a dozen LPs according to a filing with the US securities regulator. Balfour
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Beatty Infrastructure Partners reached a $317m first close in January last year thanks to $110m of cornerstone capital from Balfour itself. Greenhill & Co is acting as a placement agent for the fund. The company announced plans to set up a fund management business in November 2010 and has since them compiled a 16-strong team led by Rob Gregor, managing partner, who was previously head of European infrastructure at AMP Capital Investors. BBIP was formed in 2011. The firm’s objective was to combine in-house infrastructure asset knowledge – particularly from within the Infrastructure Investments division and Parsons Brinckerhoff – to earn a superior return on capital as well as advisory fees. In addition, its parent group hopes the firm’s investment activities will help diversify risk. Balfour ultimately hopes to bring its share in the fund to about ten per cent. The firm said drawdowns will be dependent on the timing of investments by the fund, but it is anticipated that Balfour’s commitment will be invested over the next three to four years. BBIP will invest in assets with predictable, long-term cash flows, typically with government-backed revenues or capacity based contracts.
M/C Partners picks up $176m for first fund since rebranding from venture to PE A fledgling private equity firm founded by a pair of executives from Battery Ventures’ industrial technology practice is targeting more than $100m for its debut fund. Early-stage private equity firm M/C Partners has pulled in more than $175m for its first fund since rebranding from a venture capital investor. M/C targeted $550m for its last vehicle in 2006 and $500m for its fifth fund in 2000, although no target is given for the latest fundraise in a filing with the US Securities and Exchange Commission. It shows that 22 LPs have pledged capital to the fundraise to date. M/C targets emerging services within the communications, technology and media sectors, aiming to make equity investments of between $5m and $50m per deal. It specifies interest areas including wireless services, fibre-optic communications, out-of-home advertising and technologyservices on its website. M/C was previously known as M/C Venture Partners. In August last year M/C completed the exit of cable business Baja Broadband to Telephone and Data Systems for $267.5m. The San Francisco-based firm co-led the buyout of
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Baja in 2006 and has since invested $27.2m in the business, which has achieved average EBITDA growth of 22 per cent over the past four years. Baja is a full-service communications company, providing video, high-speed broadband and voice services to residential and commercial customers in several US states.
KSL Capital raises $378.5m for first Credit Opportunities Fund US private equity firm KSL Capital, which focuses on travel and leisure space, has raised $378.5m for its first credit fund. Placement agent Probitas Fund Group is listed in the SEC filing as receiving $1.39m of sales commission. Having raised over $3.9bn in equity capital investments since 2005, the firm traditionally focuses on acquisitions of “complex, operationally intensive businesses” undertaking targeted capital expenditures, operational efficiencies and enhanced marketing strategies, but will seek a different approach with KSL Capital Partners Credit Opportunities Fund. KSL’s investments range across travel and leisure businesses, such as hotels and resorts, clubs, fitness, ski and resort real estate. Most recently, the firm’s golf club operator ClubCorp Holdings sought to raise up to $324m in its IPO last year.
Kvamme’s Drive Capital gathers $224m towards $300m debut fund The Cincinnati-based venture capital fund managed by Sequoia Capital partner and LinkedIn director Mark Kvamme has pulled in more than $220m towards its new $300m fund, AltAssets has learned. Drive Capital has pulled in the commitments from 18 LPs according to a new filing with the US securities regulator. AltAssets revealed in August that the firm had raised more than half of its target after collecting $181m from 14 LPs. The fund has set a $1m minimum commitment requirement for investors and does not have a placement agent according to the filing. Drive Capital I will be focus on the Midwest and make most of its investments in Ohio, Kvamme previously told the Columbus Business First. He launched Drive Capital
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with fellow Sequoia venture capitalist Christopher Olsen in November last year. During his time as a partner at Sequoia, which has invested in Google, Yahoo! and PayPal, Kvamme was focused on services and software companies. He is currently a director of LinkedIn, Cast Iron Systems, Funnyordie.com, StrongMail Systems, Mark Logic, and Adbrite, according to his LinkedIn page. In addition to his job at Sequoia, Kvamme has also served as a director of job creation at Ohio Governor’s Office and a director of the Ohio Department of Development. Last year Kvamme and Globespan Capital Partners led a $2m seed round for HR technology provider Gild
CapStreet Group raises nearly $250m for latest fund Lower mid-market private equity firm CapStreet Group has raised nearly $250m for its fourth fund, AltAssets has learned. CapStreet IV has received commitments of $249.45m from 51 LPs, according to document filed with the US Securities and Exchange Commission. The fund, which does not have a placement agent, registered its first commitment in December, the filing showed. CapStreet did not specify whether the fund has been closed and did not reveal the target. The vehicle is already larger than CapStreet’s third fund, which was closed with commitments of $178m in November 2010. CapStreet is focused on acquiring controlling stakes in companies based in Texas and other Sunbelt states with enterprise values of less than $150m. Since its launch in 1990 the firm has invested in 35 companies, which have completed more than 250 add-on deals. Last year CapStreet completed a majority recapitalisation of TF Hudgins in partnership with the engineering group’s senior management.
Reservoir Capital collects $185m for debut energy and power vehicle Reservoir Capital Group, the investment firm set up by a trio of former Ziff Brothers deal managers, has pulled in the first capital for its debut energy and resources fund. The firm has registered just over $185m of commitments according to filings with the US Securities and Exchange Commission thanks to 35 LPs. That is currently well short of its $1.5bn target, which was revealed by the Oregon Investment Council last summer as it agreed to commit $100m to the vehicle. Another $50m has been committed by a single LP in a side fund named Reservoir Resource Partners TE. North Carolina-based Aqueduct Capital is named as a placement agent on both filings, and is working across all US states. The fund will be used to target investments in energy, natural resources and power generation. Reservoir already has about $6bn of LP capital under management across three funds, and has been raising capital since it was founded in 1998. The firm was launched by co-CEOs Daniel Stern and Craig Huff and senior managing director Gregg Zeitlin. Last week AltAssets revealed that energy-focused investment firm Energy & Minerals Group (EMG) had secured more than $1.2bn for its third fund. Energy & Minerals Group Fund III has received commitments of $1.21bn from 63 LPs, a document filed with SEC showed. Credit Suisse is acting as a placement agent for the fund, which does not have a minimum commitment requirement according to the filing showed.
DFW Capital Partners outstrips $150m target in Fund IV final close Lower mid-market investor DFW Capital Partners has beaten its target for its fourth private equity fund by holding a $162.5m final close. The firm held a $50m first close for the vehicle in November last year and had passed the $100m point in August according to previous AltAssets reports. Fund IV’s total
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included a “significant “commitment from the general partner according to a statement from the firm. It said the fund had already been tapped for a trio of investments in Information Innovators, Covenant Surgical Partners and Sebela Pharmaceuticals. DFW managing partner Keith Purnell said, “We are deeply grateful for the support of our existing fund investors, who increased their commitments to DFW IV significantly from the prior fund, and are excited to welcome many new limited partners as well. We are particularly fortunate to have closed the fund in a relatively quick fashion, and to have been oversubscribed – exceeding our original fundraising target of $150m. We look forward to continuing to employ our disciplined investment strategy and building a strong portfolio of unique, service-oriented businesses.” The firm plans to invest up to $20m of its own capital in each opportunity, or larger amounts in co-investments.
JP Morgan raises more than $140m for two funds JP Morgan’s investment management unit has raised just over $144m for two fund of funds vehicles.
CID Capital secures more than $150m for latest fund
JP Morgan’s Corporate Finance Institutional Investors V has secured 82.43m from four LPs and its European Corporate Finance Institutional Investors V has raised $61.82m from three investors, according to documents filed with the US Securities and Exchange Commission. The funds have minimum investment requirements of $10m and $20m, respectively, and don’t have placement agents, the filings showed. Both vehicles registered their first commitments in December. Back in November it was reported that JP Morgan was mulling a spinout of its private equity unit One Equity Partners. The bank was asking prospective investors to sign letters of intent to make offers for the business in early December, according to a Dow Jones report.
Private equity firm CID Capital has raised more than $150m for its latest fund, AltAssets has learned.
Corinthian Capital collects more than $100m for Fund II
CID Capital Opportunity Fund II has secured $153m from 34 LPs, according to a document filed with US securities regulators. In September last year AltAssets reported that the fund had raised nearly $100m towards its $150m target. The amount raised matches the fund’s updated target, but the firm did not specify whether it has held a final close. Bonnie Plulnkett acts as a placement agent for the fund, which has a minimum commitment requirement of $1m for outside investors, the filing showed. CID makes majority investments of $10m to $70m in lower mid-market businesses in the consumer, industrial and distribution sectors. It targets USheadquartered companies with revenues of between $10m and $75m and an EBITDA of $2m. The firm has raised more than $280m across seven funds and has made equity investments in nearly 70 companies.
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Mid-market US buyout house Corinthian Capital has pulled in more than $100m for its second fund, AltAssets has learned. The firm has tapped 26 LPs for the capital according to a regulatory filing, which shows it has hired Park Hill Group as a placement agent for the vehicle. Corinthian has registered to raise up to $600m for Equity Fund II, although that is believed to be a hard cap on a $500m target. The firm pulled in $314m for its debut vehicle in 2007. That vehicle has been tapped for businesses in Corinthian’s target sectors of manufacturing, distribution, service and consumer products, primarily in North America. It generally looks for businesses in EBITDA of $10m to $30 and sales of between $50m and $250m.
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Ironbridge Equity continues rapid fundraise, collects more than $90m for second close
Hispanic company-focused AUA Private Equity collects $64m towards debut fund
Canadian private equity firm Ironbridge Equity Partners has held a second close of more than C$90m for its second buyout fund after less than six months in the market.
A fledgling private equity firm launched to target the Hispanic market in the US has pulled in $64m towards its debut fundraise.
Ironbridge had planned to raise C$125m for the fund but is now highlighting the vehicle’s C$150m hard cap following the rapid capital gathering to date. AltAssets revealed last year that the firm was hoping to wrap up the fundraise by the end of 2013 following its lightning rush to a C$50m first close. Despite falling short of that aim the fundraise continues apace, and has already outstripped the capital Ironbridge is believed to have raised for its debut fund. The firm did not publish figures for its first fund’s final close, but revealed in January 2006 it expected to reach between C$50m and C$75m after holding a better than expected first close. Investors in the latest vehicle include a diverse group of Canadian institutional investors including Northleaf Capital Partners, two chartered banks and a large life insurance company, the firm said in a statement. It added that it had started marketing the fund outside of Canada following the first close, and was expecting a rapid run to its target thanks to strong interest from international investors. Elm Capital is acting as a placement agent for the fund. The fund closed its first investment, Frischkorn Audio-Visual Corp, in October last year. Ironbridge has previously concentrated on deals sizes of between C$15m and C$50m, with an equity component of between C$5m and C$30m. It looks to gain controlling stakes in businesses with a view to exiting them after four to seven years. Previous investments have included ambulance manufacturer Demers, portable heater maker Frost Fighter and academic and religious clothing maker Gaspard. Its two exits to date are floor covering product maker Gesco Industries and Orbit Garant Drilling.
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AUA Private Equity Partners is targeting $200m for the vehicle according to a regulatory filing, which shows it could collect up to $250m if there is sufficient demand. A total of 18 LPs have committed capital to the fund to date, with AUA expecting to complete the raise within 12 months. New Yorkbased Kristina Maria Matthews is acting as a placement agent for the vehicle within the state. AltAssets revealed AUA had launched in April 2012 by the former COO of Goya Foods, the most successful Hispanic-owned food company in the US. Andy Unanue partnered with the former principals of Gotham Private Equity Partners, which integrated its operations into the new firm. AUA Private Equity Partners plans to invest between $10m and $30m of equity in companies focused in the consumer, media and business services sectors. The firm plans to make control and significant minority investments in companies with earnings before interest, taxes, depreciation and amortisation of $3m to $5m, through leveraged buyouts, growth equity, recapitalisions and roll ups.
ff Venture Capital hits target zone in $52m fund close Early stage investor ff Venture Capital has reportedly held a $52m close for its latest fund , pushing it close to its $70m target. AltAssets reported in November that ff Rose Venture Capital had gathered more than $37m for the vehicle, but it has now passed the $50m mark according to Dow Jones. It cited sources close to the firm, which was one of the first firms to publicly market its vehicle following recent changes to SEC regulations. Cato Capital and IEG GmbH are acting as placement agents for the fund, according to a filing made with the US Securities and Exchange Commission last month. The firm previously said it was looking to raise between $50m and $70m for the fund, which follows a $27m vehicle
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closed in 2011. It also collected $6m of commitments for its ff Blue vehicle in 2008, and has been investing since 1999. ffVC has also disclosed that its funds generated an IRR of over 30 per cent in the ten year period to the end of 2012. The firm invests up to $1m per company with initial investments of $75,000 to $400,000 in early-stage webbased services companies. It targets businesses valued at $5m in first funding with potential to generate an annual EBITDA of more than $10m within five to seven years. ffVC is led by partners John Frankel, Alex Katz and David Teten. Earlier this year ffVC hired startups expert Jason Reynolds as its first engineer-in-residence.
Tandem Capital hits $50m mark for third fund Silicon Valley’s first mobile-exclusive accelerator Tandem Capital has already raised more capital for its third fund than for its second vehicle after less than a year on the road. Tandem Fund III has secured commitments of $53.8m from 46 investors, the firm revealed in a document filed with the US Securities and Exchange Commission. TF III, which has a $100m target, registered its first commitment in March last year, the filing showed. The vehicle follows Tandem’s second fund, which was closed with commitments of $32m in June 2012. The previous fund was backed by technology industry heavyweights including Verifone CEO Doug Bergeron, former Apple general counsel Dan Cooperman and Google founding board member Ram Shriram. Tandem makes initial investments of $200,000 per company in up to six mobile startups at a time. Its previous investees include media storage and syncing service ZumoDrive and mobile collaboration specialist Attassa, which were sold to Motorola in 2010 and YouSendIt in 2011, respectively.
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Capvis Equity Partners raises €720m for latest fund European private equity firm Capvis Equity Partners has beaten the target for its latest fund thanks to strong support from its existing LPs. Capvis Equity IV has held a final close on its €720m hard cap, beating its initial target of €600m, the firm said in a statement. More than 80 per cent of Capvis’ existing investors participated in the fundraise alongside new LPs. Capvis noted that more than a third of the capital came from local German and Swiss institutions. Capvis partner Rolf Friedli said, “We are delighted that so many of the existing investors have demonstrated confidence in the Capvis’ strategy by committing to the Fund. Capvis’ proven ability to return capital to investors has resulted in an efficient and successful fundraise. We are now looking forward to capitalising on the exciting investment opportunities in German Speaking Europe.” Since 1990 Capvis has invested more than €4bn across 44 deals and floated nine companies. Capvis raised €600m for its third fund in 2008, well above its €500m target. The new find will invest between €20m and €100m in Switzerland, Germany and Austria.
Bowmark Capital raises £375m for latest fund UK mid-market firm Bowmark Capital has held a first and final close of £375m for its fifth fund after only ten weeks on the road. The fund was backed by 22 LPs with 49 per cent of the funds coming from continental Europe, 34 per cent from North America, eight per cent from the UK and nine per cent from elsewhere, the firm said in a statement. Pension funds accounted for 38 per cent of the capital, while insurers and fund of funds vehicles provided 21 and 16 per cent of the funds, respectively. In October last year it was reported that Bowmark was looking to raise £375m for a new fund and expected to wrap up the fundraise by Christmas. Bowmark makes investments of between £20m and £100m in UKbased profitable companies with an equity requirement of £10m to £40m.
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The London-based firm currently has £700m under management and its LP base includes public pension funds, insurance companies and banks based in the US, the UK and elsewhere in Europe. Last year Bowmark backed the £30m management buyout of London based bar and restaurant chain Drake & Morgan. The deal saw bar and restaurant investor Imbida Partnership exit its investment in the group, which is led by company founder Jillian Maclean.
Activa Capital holds first close for Fund III French private equity firm Activa Capital has reportedly held a first close for its latest fund. The firm has so far secured €200m towards the fund III’s €320m target, according to Private Equity International. Activa invests in mid-sized French companies with enterprise values of €30m to €200m. The firm, which currently has €500m of funds under management, raised €315m for its Fund II in 2007. Its portfolio companies include La Maison Bleue, which made the bolt-on acquisition of day-care nurseries Crèches Baby & Co in July last year. Activa backed the management buyout of La Maison Bleue in December last year. The company said at that time that it aimed to double its size during the next four years and needed a longterm private equity shareholder to accompany its growth both in France and internationally.
August Equity Partners holds £200m hard cap final close for Fund III UK lower mid-market buyout house Partners has beaten the £180m target for its third fund by holding a £200m final close. August has hit the hard cap for the fund after less than 18 months and received interest for up to £300m according to Unquote, which spoke to managing partner Philip Rattle. He said fundraising and marketing were now fully ongoing exercises, with the days of only tapping up potential LPs six months before a launch long gone. August kicked off the fundraise in a strong position having just made three-times its initial investment through the exit of support living business Lifeways. The fund held a £100m first close in June last year, three months earlier than anticipated, and has Copyright © AltAssets Limited.
since outstripped the £150m it gathered for its second fund in 2008. LPs investing in that vehicle included Deutsche Bank, JPMorgan and Partners Group. Investors in the latest fund include Partners group, JP Morgan, Akina and PPM Managers according to Unquote. A separate statement from Rattle said, “We are delighted with the our fundraising of our third fund and in particular to have the backing of a strong base of blue chip investors. We have worked hard with our management teams to exceed our investors expectations and the successful fundraise is a testament to that effort. We are currently working on a number of investment opportunities which we expect to complete in the coming months which will continue our proven strategy of investing between £10m and £30m of equity in deals in the healthcare, education, technology services and business services sectors.” August inked the first investment from its third fund last July by backing independent school operator Minerva Education. Minerva comprises Eaton Square School Group and Ravenstone School. Eaton Square currently has over 650 pupils on roll, while Ravenstone offers pre-prep and prep education in London.
Ambienta hits €200m for environmental private equity fund Environmental-focused private equity firm Ambienta has held second close on its Ambienta II fund, raising €200.2m. Investors in the second close included Italian and Nordic pension funds, the firm said. Ambienta began carrying out pre-marketing for Ambienta II back in 2012. First close came in October of last year when the fund hit €147.2m – raising more than its initial target. Among those that have committed are new Italian and international institutional investors including pension funds, insurance companies, fund of funds, and family offices. International investors from Europe and North America represent some 40 per cent of aggregate commitments, the firm said. The fund will seek investments in European SMEs within areas of growth offered by environmental drivers such as natural resources scarcity and pollution control. The firm is seeking investments in European companies that would market their environmental technologies abroad as well as those in the water and waste management space. In
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its most recent statement Ambienta noted that over 50 per cent of Ambienta I growth portfolio company revenues are generated from outside Europe, having more than doubled over Ambienta’s holding. The fund is a follow-up to the Milanbased firm’s debut fund, Ambienta I, which raised €217.5m in 2009 and to date has built a portfolio of SMEs. within the environmental sector. The vehicle had an average investment size ranging from €10m to €30m and focused on mid-term capital appreciation. Ambienta said it will increasingly seek investments in European companies that could market their environmental technologies abroad as well as those in the water and waste management space. The firm typically pursues a valuegenerating strategy through international business development and growth. Fifty per cent of the firm’s portfolio company revenues are generated from outside Europe, having more than doubled over Ambienta’s holding, the firm said.
Beechbrook commits 35 per cent of Fund II capital with three months of raise to go Mezzanine debt investor Beechbrook Capital has sealed two more deals from its second fund, which it hopes to close on €120m by Easter. The lower-mid market investor has provided mezzanine loans to compliance and business support company Simply Biz and subsea infrastructure services provider N-Sea. Beechbrook has now made three investments from its Mezzanine II fund, which is now 35 per cent committed. Easter as it looked to outstrip the €100m it gathered for its debut vehicle. The London-based firm passed the halfway point for Beechbrook Mezzanine II in May by holding a €67m first close, and has set its sights on collecting up to €120m for the vehicle. Beechbrook partner Nick Fenn told AltAssets at the time, “I expect we will have one substantial, I hope, further close in March or Easter time. We’re hoping to get to more than €100m or so, if we can get a little bit above that then great. We have got some additional commitments conditional on raising a certain amount.” Fenn told AltAssets in January that the European Investment Fund had made a “significant” anchor investment into the fund, while the UK government’s Department of Business, Innovation and Skills had also committed alongside four other LPs.
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Beechbrook said the EIF and the DBIS had both backed the fund in response to the continuing dearth of funding available to lower mid-market companies from banks and mainstream institutional lenders. The firm’s debut vehicle was formed through separate funds raised in 2010, 2011 and 2012, and has invested across 16 assets.
Seventure Partners holds €62m first close for new fund French private equity firm Seventure Partners has raised more than half of its new fund, which is targeting €120m. Health for Life Capital has held a first close of €62m, the firm said in a statement. The fund will invest in microbiome and nutrition focused businesses based in North America and Asia. Seventure added that the Health For Life Capital has been approached by a number of pharmaceutical labs, diagnostics and ingredient companies as well as financial investors and it is expecting to hold new closings in the coming months. Seventure CEO Isabelle de Cremoux said, “We are proud to be trusted in by prestigious industry champions as Danone, Tereos and Tornier. In addition, the close cooperation we have established, will boost the financial performance of the fund Health For Life Capital. We also have attracted family offices and financial investors like Natixis and Unigrains.” In June last year Seventure led an $8.5m Series A round for development-stage medical device company Middle Peak Medical.
SUSI Partners holds €65m first close for new fund Swiss green investment firm SUSI Partners has held a first close of €65m for its energy efficiency fund, beating its expectations of a €50m closing. The firm said that it can use leverage of up to 50 per cent on project level, which means it has €130m available for investment in energy efficiency projects. The fund, which is capped at €300m, has been backed by insurance companies, pension funds and large foundations from Germany and Switzerland. In the second quarter, SUSI expects to hold a
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first closing for the part of the fund denominated in Swiss francs, which will invest in Switzerland-based projects. SUSI CEO Tobias Reichmuth said, “This immediate fundraising success shows the attractiveness of our second fund given the current low interest rates. Also the fact that the fund qualifies as debt instrument under Solvency II supports our product.” In March last year SUSI appointed former Swiss president Moritz Leuenberger to its board of directors.
Eastern Link Capital raises $330m fund China-focused private equity firm Eastern Link Capital has raised RMB2bn ($330m) for its second fund. Like Eastern Link’s first fund, the new vehicle will invest in the consumer, pharmaceutical, IT and new energy sectors, according to the Asian Venture Capital Journal. Eastern Link targets businesses with revenues of $500m or more and has an investment period of three to five years. Investors in the new fund include a fund of funds joint venture of Suzhou Ventures and China Development Bank. China-focused funds currently in the market include Sailing Capital’s buyout vehicle, which has recently been launched with a RMB5bn ($821m) target. The fund will offer a platform for Chinese companies looking to venture overseas for growth opportunities, and will also prioritise the use of local currency in pricing, transaction and settling of projects.
STIC Investments raises more than $170m for new private equity fund Korean investment firm STIC Investments has raised more than $170m for its latest private equity fund, AltAssets has learned. STIC Private Equity Fund III has secured commitments of $171.8m from nine investors in its first year on the road, the firm revealed in a document filed with the US Securities and Exchange Commission. The firm is raising the fund without a placement agent and it has not set a minimum commitment requirement for outside investors, the filing showed. The first Copyright © AltAssets Limited.
commitment was registered in February last year, a month after STIC revealed the fund launch in another regulatory filing. STIC has raised $419m across its two previous private equity funds. It also has funds dedicated to mergers and acquisitions, secondary deals and venture capital investment. The firm targets Asian growth stage mid-cap technology companies. Other Korean funds currently in the market include Vogo Investments’ second vehicle, which is targeting $650m. In December it was reported that the firm had raised $350m and expected to hold a final close in 2014.
Indiareit raises $161m for Indian real estate investment Indian real estate firm Indiareit Fund Advisors, has raised INR10bn ($161m) for its latest investment fund. The capital will be directed to India’s main metro cities in the country, according to the Economic Times. The firm operates as the real estate private equity arm of Indian conglomerate Piramal Enterprises. In all it manages just under $700m across five funds two separate accounts. In November 2013 Indiareit raised $118m for its Domestic Scheme V vehicle.
Riverside secures $135m for second Asia-Pacific fund The Riverside Company, which has just closed its new flagship fund on $1.5bn, has raised an additional $20m for its second Asia-Pacific fund since June, AltAssets has learned. Riverside Asia-Pacific fund II has secured $135m from 64 LPs towards its $150m target, according to a document field with the US Securities and Exchange Commission. In June AltAssets reported that the vehicle had secured commitments of $115m from 53 LPs. Probitas Funds Group is acting as a placement agent for the fund, which has a minimum commitment requirement of $50,000. The first commitment was registered in September 2012, five months after sealing its first exit from Riverside Asia-Pacific Fund I by selling Shinsouki. The Japanese coin parking lot operator was acquired in 2008 in the firm’s first deal in the Asia Pacific region. Since then the firm has extended its Asia-Pacific operations by opening an office in Singapore, its fifth base in
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the region after Hong Kong, Melbourne, Seoul and Tokyo. The firm – which specialises in LBOs and recapitalisation – is focused on acquiring growing businesses across the globe valued at up to $200m.
Oversea-Chinese Banking Corp launches $100m domestic private equity fund Singapore’s Oversea-Chinese Banking Corp has reportedly launched a $100m private equity fund to target businesses in the country. OCBC created the fund under the Shanghai Qualified Limited Partner programme according to the Singapore Business Times, which said the foreign commitments would be converted into renminbi and invested in China over five years. It added that the move opens the way for OCBC raising its own onshore renminbi fund in the future, citing the bank’s head of mezzanine capital Than Su Ee. Last March private equity firms were given the green light to hold fundraisings in Hong Kong for investments in mainland China after the Asian economic giant agreed to ease regulations. The new rules cover firms operating in Shenzhen’s Qianhai enterprise zone.
Japanese secondaries private equity firm WM Partners raises $50m Japanese secondaries-focused private equity firm WM Partners, founded by former CEO of Japanese investment group JAIC, has held an interim close of JPY5.25bn ($50m) for its first fund, AVCJ reported. The firm span out of JAIC last year, and is seeking to raise as much as JPY10bn ($102m). The fund – JSPF No. 3 has secured commitments from both institutional and strategic LPS, the report said, including Organization for Small & Medium Enterprises and Regional Innovation, which allocated JPY2bn. Matsumoto said the firm will also seek to market to both overseas and homegrown institutional investors, with a final close of between JPY8bn and JPY12bn, “within a year. The firm will seek to work with corporations seeking to downsize their investment activities or those Copyright © AltAssets Limited.
institutions looking to comply with regulation. WM will also provide liquidity to venture capital firms nearing the end of their fund lives.
Elevar Equity secures first commitments for $125m third fund Emerging-markets focused venture capital firm Elevar Equity has launched its third fund with $125m, AltAssets can reveal. Elevar Equity (EE) III has received commitments of $14.2m from 10 LPs, according to a document filed with the US Securities and Exchange Commission. The fund, which does not have a minimum investment requirement, registered its first commitment last month, the filing showed. EE III is larger than Elevar’s second vehicle, which was closed with commitments of $70m in March 2010. Since its launch in 2006 the Seattle-headquartered firm has backed 16 businesses and was the first institutional investor in 14 of them and a founding investor in four companies. It invests in microfinance and other services in emerging markets including India, Mexico, the Philippines and Peru. Companies backed by Elevar include Latin American housing finance business Union Andina, Indian healthcare services group Glocal Healthcare and Bangalore-based Vistaar Finance, which provides loans to rural and semi-urban small businesses in India.
Israel’s StageOne Ventures back in market for $100m second fund IT-focused Israeli investment firm StageOne Ventures is eyeing up to $100m for its second fundraise, AltAssets has learned. StageOne Venture Capital II will be twice the size of the firm’s $50m debut vehicle if it hits the target filed with the US securities regulator. That filing shows the firm expects to complete the fundraise within the next 12 months. StageOne targets communications businesses and is sponsored by Israel’s major telecoms provider Israeli PTT Bezeq. It currently
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has two portfolio companies according to its website, having sealed six exits from investments by its debut vehicle. Those two businesses are telecoms and media revenue-intelligence service cVidya Networks and fibre-optic systems manager FiberZone. Managing partner Yuval Cohen has more than 15 years of experience in the venture capital market, having previously been a venture partner in the $100m Israel Infinity Fund. He has been involved in young startups as an earlystage investor and director since 1995.
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