ACE & Company, the Geneva-based private equity firm, is planning to hold a final close on $250 million for its third co-investment fund in January, Private Equity International has learned.
The firm has currently raised $210 million for ACE Buyout III, which has a $300 million hard-cap, co-founder Adam Said told PEI. The capital is predominantly from managers of private client money, of which around 60 percent are from Europe, 30 percent the Middle East and the remainder from Asia.
Just one of the 12 limited partners in ACE’s previous co-investment fund has not reupped for Fund III, Said noted. ACE Buyout II, a $150 million 2013-vintage, has generated a 42.8 percent gross internal rate of return across three exits and 30.6 percent across all buyout distributions from realisations since inception.
ACE III, which is not bound by geographic or sectoral mandates, targets co-investment opportunities of around $10 million-$15 million with established buyout firms; previous partners include Carlyle Group and BC Partners. The fund charges a 1 percent management fee and 10 percent carried interest on contributed capital, or 1.5-and-15 for LPs wanting the ability to opt-out of certain deals.
“We have a strategic mandate, but the investor doesn’t care if to get that we do something in China, France or New York,” Said added. “If it fits the diligence and risk parameters then you’ll find the returns.”
ACE’s current portfolio includes US retail chain PetSmart, alongside BC Partners, and Bermuda-headquartered transportation firm Interlink Maritime, alongside Carlyle Group. The firm has around $604 million of assets under management, according to PEI data.