Private equity firm Cinven has closed its fifth European fund at €5bn, making it one of the largest funds exclusively dedicated to European buyouts.
Cinven revealed the fifth fund attracted a greater share of LPs from the Americas than its €6.5bn fourth fund, attracting half its capital from the region compared with 42 per cent in 2006.
The firm said that was significant “given the working assumption of many is that US investors are currently wary of investing in Europe”.
Fund V has also seen an increased proportion of commitments from sovereign wealth funds and family offices, while some of Cinven’s existing LPs upped their commitments compared to the previous fund.
Back in February FTSE 250-listed fund investor SVG Capital announced it had committed €100m.
The fund is already 14 per cent committed having invested in Pronet, Prezioso, Mercury Pharma and Amdipharm.
Cinven said its previous funds had performed strongly, producing an IRR of 41 per cent on 82 realised investments since 1988, including three realisations last year.
They were the IPO of Dutch cable business Ziggo with an initial market cap of €3.7bn, the agreement to sell Avio’s aviation business for €3.3bn and the exit of its investment in Nordic construction products distributor Ahlsell for €1.8bn.
It also noted that following the sale of Avio’s business its fourth fund will have realised around 55 per cent of the paid-in capital, one of the highest ratios of European funds of its vintage.
The valuation of the fourth fund’s unrealised portfolio increased 27 per cent between December 2011 and December 2012, it added.
Cinven managing partner Hugh Langmuir said, “Our successful fundraising demonstrates the confidence they have in our abilities to continue finding attractive investment opportunities across Europe, despite the challenging macroeconomic environment.
“We have constantly stated that the fifth Cinven fund does not represent a ‘macro Europe’ investment opportunity but a ‘micro’ one – finding individual Europe-based companies with strong growth potential either globally or in their domestic markets.”
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