BC Partners wins fund extensions from LPs

The London-based firm is extending the investment period on its current Fund VIII to June 2011 and the hold period on Fund VII for two years.

BC Partners has received an extension of the investment period in its €6 billion eighth fund, and a two-year extension of the hold period in its €4.3 billion seventh fund.

The firm’s limited partners approved the extensions, with about 90 percent of LPs voting to extend the investment period in Fund VIII, which closed in 2005. The investment period was extended to June 2011 from its former deadline of this November.

Fund VIII has about $1 billion left to invest, according to a source with knowledge of the situation. The investment period extension was not necessary, the source said, but takes some of the pressure off the firm to get the capital invested right away.

“They didn’t definitely need it; they have lots of opportunities in the pipeline,” the source said.

BC Partners held back on investing the fund during the credit bubble from 2006 to 2008, the source said. The firm then deployed 30 percent of the capital in the fund after Lehman Brothers collapsed in 2008.

For Fund VII, the firm requested an extension of the hold period for two years because there are some unrealised investments that have been taken public. The firm still has stakes in the companies that went public.

BC Partners has already realised about €7.5 billion from its Fund VII investments. This year, BC Partners took public three companies from the seventh fund, including chemical company Brenntag, which raised €748 million in its public float in Germany. BC Partners held onto about 71 percent of the company.

BC Partners plans to launch Fund IX in September with a €6 billion target.