London-headquartered asset manager F&C has held a €90m first close for its latest mid-market fund of funds.
The close puts F&C European Capital Partners II more than half way to the €173m it gathered for the predecessor vehicle in 2008.
F&C said it picked up the latest commitments from LPs including UK, Dutch and German pension funds, and expected to close the vehicle within the next 18 months.
The vehicle will target primary and secondary funds and co-investments with an emphasis on emerging managers, targeting between 15 and 25 investments.
Up to 30 per cent of those could be co-investments according to the firm, which said it defined the mid-market as companies with enterprise values of between €25m and €500m.
F&C Private Equity Funds currently manages over €750m across six funds of funds.
Hamish Mair, head of F&C PEF, said, “We are delighted to reach a first close of this new fund with the support of a number of our existing investors.
“The current market conditions, where there is considerable uncertainty and an uneven and only partially established economic recovery, makes for challenging fund raising, but it generally creates good buying conditions for those with capital to invest.
“Prices of private companies in the European mid-market have been falling and are now very attractive and it is our belief that focused and diligent investors should be able to buy well over the next three years or so and in due course make excellent returns when the economic background improves.”
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