European mid-market buyout house Capvis has raised a €230m continuation fund to buy up the remaining three portfolio businesses in its 2008-vintage Fund III.
Committed Advisors and Eurazeo IM co-led the transaction, which marks the first continutation fund raised by Capvis.
The firm closed Capvis Equity III on €608m in March 2008, beating its initial €500m goal.
Capvis said the continuation fund would provide extra time and capital for an “optimal exit” of hessnatur, arena and Kaffee Partner.
hessnatur is a Germany eco-fashion company with a focus on sustainability and a rapidly growing e-commerce business, arena is a global producer of swimwear and equipment for competitive swimmers and enthusiasts, and Kaffee Partner is the market leader in distribution of coffee and water dispensing machines in the DACH region.
Existing Capvis III investors were provided with the choice to receive full liquidity or to fully or partially re-invest into the new vehicle.
Capvis managing partner Daniel Flaig said, “The high quality of the companies, a positive assessment of the prospects in the European consumer goods sector and the attractive transaction structure were the basis for strong investor demand.”
Committed Advisors managing partner Guillaume Valdant added, “We are very pleased to have contributed to providing a solution to the Capvis III investors seeking to obtain liquidity, and also welcome the high percentage of those willing to reinvest in the continuation vehicle and maintain their exposure to this attractive portfolio.”
Eurazeo managing partner Christophe Simon said, “We are convinced that all three companies will benefit from the continued digitalisation trend, further reinforced by the pandemic crisis, a commercial rebound with the easing of sanitary restrictions and the growing importance of ESG.”
Capvis was exclusively advised by Asante Capital Group on the transaction.
The firm hit a €1.2bn final close for its fifth flagship fund in 2018, beating the €720m it previously gathered for Fund IV.
Capvis said the latest vehicle would be used to build on its investment strategy of the previous funds, backing leading mid-sized companies in what it calls the industrial corridor of Europe – Switzerland, Germany, Austria, Italy and Benelux.
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