European Capital seals 1.8x return on Scaff’holding exit


scaffoldingAmerican Capital affiliate European Capital has made a 1.8 times money multiple by exiting its investment in Equistone-backed scaffolding rental and sales company Scaff’holding for €7.2m.

The exit of the Paris-based business represented a 13 per cent IRR for the firm, which specialises in pan-European equity, mezzanine, unitranche and senior debt investments.

European Capital invested €7.5m in a mezzanine facility alongside Capzanine to support Equistone’s secondary buyout of Scaff’holding in April 2007.

The company partially repaid the mezzanine facility in October 2011, with European Capital receiving €3.1m.

European Capital’s exit comes amid Equistone agreeing to sell the business to management and several minority equity investors.

Stephane Legrand, managing director of European Capital Financial Services, said,  “Scaff’holding has a proven track record of resilience and cash-flow generation.

“The company has also demonstrated its ability to grow internationally, notably by expanding its presence in Brazil.”

Copyright © 2010 AltAssets