BDC to close Fund III on £600m hard-cap

The small-cap arm of pan-European firm Bridgepoint has reached its hard-cap after just three months in market.

Bridgepoint Development Capital, the small-cap arm of pan-European firm Bridgepoint, has completed fundraising for its latest vehicle after just three months on the road, Private Equity International has learned.

Bridgepoint Development Capital III has exceeded its initial target of £500 million (€632 million; $720 million) and is fully allocated at its £600 million hard-cap, according to a source with knowledge of the fundraise.

It is understood that the firm is wrapping up the paperwork for the fund, which will officially close in the coming weeks. The fund was heavily oversubscribed with a high degree of scale-backs, the source added.

Bridgepoint declined to comment on fundraising.

The fund is considerably larger than its predecessor, the 2012-vintage Bridgepoint Development Capital II, which closed on €353 million. That fund is 75 percent invested in 12 companies and has made two realisations so far.

Investors in Fund II include the European Investment Fund, The Royal Bank of Scotland Group Pension Fund and the School Employees’ Retirement System of Ohio, according to PEI Research & Analytics.

Bridgepoint Development Capital III will continue with the same investment strategy, focusing on business in the UK, France and the Nordics with an enterprise value of between £30 million and £125 million.

BDC’s team of 24 investment professionals operate from its offices in London, Paris and Stockholm.

This week BDC sold Christian Liaigre Group, a French interior design and architecture studio for luxury private residences, to Symphony International holdings. Financial terms of the transaction were not disclosed.

In February BDC completed the sale of its majority stake in Swedish transport management software business Unifaun Group, formerly known as Memnon Networks, to Vitruvian Partners. Under BDC’s ownership Unifaun’s revenues doubled and it expanded its geographical reach, as reported by PEI.

Other recent exits by the BDC team include the sale of UK-based aeroplane parts manufacturer Shimtech to Inflexion and Auctus Industries for $220 million, generating a 3x return and an internal rate of return of 37 percent, the sale of French holiday parts operator Siblu, which it sold to Sterling Square Capital Partners, and Quotient Clinical, a provider of outsourced, early-stage drug development services to the pharmaceutical industry, which it sold to healthcare specialist GHO Capital.

Recent investments include the acquisition of French electronic surveillance equipment manufacturer Anaveo in January, and the acquisition of French dental equipment manufacturer Acteon in March.

Bridgepoint is also investing through its €4 billion, 2014-vintage Bridgepoint Europe V, its flagship vehicle which closed in March 2015 above its €3.5 billion target. The fund focuses on businesses across Europe valued between €200 million and €1 billion.