Auctus holds €39m final close(3)

Auctus Management, an investor in small and medium sized businesses led by Ingo Krocke, has held the first and final close for its second parallel fund after rejecting some investors for lack of knowledge of the German market.

German firm Auctus Management has held the first and final close of its second fund on €39 million ($55 million).

The firm, which invests in small and medium sized businesses, raised its initial hard cap from €30 million due to investor demand. The fund was nearly two times oversubscribed and some investors were denied access due to the demand.

The fund will complement the firm’s evergreen fund giving it more than €100 million to invest.

Auctus founder and managing partner Ingo Krocke said: “We selected investors for their speed and like-mindedness. Given the demand we only intensified talks with those investors with knowledge of our market as we were so busy doing deals we had little time for fundraising.”

Investors in the fund include European and US fund of funds as well as some entrepreneurs.

The fund already has five investments which had been partially warehoused by the evergreen fund. Such strong deal flow from May to August was not expected, but investors were encouraged by the due diligence of the five deals, Krocke said.

The firm made an 18 times return from its investment in temporary employment business TimePartner from between 2004 and 2006, it said in a statement. It also owns packaging machine company Lemo Maschinenbau and pharmaceutical ingredient company PharmaZell.