Rothschild & Co has closed its second private equity fund this month by reaching an above-target €450m for Five Arrows Growth Capital.
The close of the corporate private equity fund brings the total assets under management at Rothschild’s merchant banking business to more than €16bn, across private equity, senior and junior credit, primary and secondary fund investing and co-investments.
Rothschild said FAGC will invest in European fast-growing small-cap companies, in specifically targeted sub-sectors within healthcare and education, data and software, and technology-enabled business services.
Typical companies will have “highly defensible market positions, good visibility of organic unit volume growth and free cash flow conversion, and multiple operational levers under FAGC’s control that can be used to unlock latent value”, it added.
The firm said it had already tapped FAGC for its debut deal, backing UK-based pharma services company BioPhorum.
It organises forums and cross industry collaboration for the biopharmaceutical industry.
Earlier this month Rothschild & Co private equity investment arm Five Arrows hit a €366m final close for its second multi-strategy fundraise, well above its €250m target.
The firm said FAPEP II would look to balance investing in well-established top-quartile fund managers alongside a selection of high-quality companies through late primaries, secondary directs and direct co-investments.
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