Astorg hits extended hard-cap on Fund VI

The firm said it stretched its hard-cap to €2.1bn to accommodate investor demand.

French mid-market private equity firm Astorg has held a final close on its sixth fund above its original €2 billion hard-cap.

Due to investor demand for the vehicle, which was “significantly oversubscribed”, the firm stretched its hard-cap to €2.1 billion.

Astorg VI, which was raised in nine months, is twice the size of its predecessor, a 2011-vintage fund which closed on €1.05 billion, according to PEI Research & Analytics.

The firm said Astorg VI is backed by a “global and diverse” investor base, 29 percent of which are pension funds, 19 percent are insurance companies, and 18 percent are institutional asset managers. Just over 60 percent of investors are from Europe, 30 percent from North America, and 8 percent from Asia.

Investors in Astorg VI include Teachers’ Retirement System of the State of Illinois, which committed $50 million, Los Angeles City Employees’ Retirement System, which committed $25 million, and Metropolitan Government of Nashville and Davidson County Employees’ Benefit Trust Fund, which committed $15 million, according to PEI Research & Analytics.

“We are grateful for the loyalty of our large group of long-standing limited partners and delighted to welcome new high profile investors who bring further skills, experiences, and perspectives to the partnership,” Astorg’s head of investor relations Jeff Orenstein said in the statement.

“We will continue to focus on creating value for all stakeholders in our companies, mindful of our environmental, social and governance responsibilities.”

Astorg has already invested 27 percent of the capital in Fund VI into three companies: HRA, a women’s health-focused pharmaceutical company; parking management solutions business Parkeon; and a business in the software sector, which is yet to be disclosed.

Astorg focuses on investments into global B2B companies with market leading positions headquartered in Europe. Its team includes 30 investment professionals and 4 senior advisors based across Luxembourg, London, Paris, Amsterdam, Frankfurt and Zurich.

Since the firm was established in 1998 it has generated an average internal rate of return of 29.2 percent and an average multiple of invested capital of 3x, it said.