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.”
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