Bregal Investments, the firm managing the investments of the Brenninkmeijer family, has announced a E700m program to invest in European and North American specialist private equity funds.
The firm said in a statement that the capital would be invested over the next three to four years. Individual commitments of between E20m to E70m each, across a range of sector specialties, are to be made.
Bregaly said that the allocation is part of the E2.5bn programme established last year to invest in “market-leading” private equity funds.
The firm also confirmed that it has committed $600m to New York-based private equity firm Center Partners Management, as was reported in November.
The investment in Center Partners mirrors the commitment made to European buyout firm Englefield Capital earlier this year, when the firm committed E495m to the debut fund launched by former Warburg Pincus executive Dominic Shorthouse. Both firms are targeting mid-market companies in their respective markets.
“A core part of our strategy was to identify two premier private equity funds, one in the US and one in Europe, where we could become the principal investor and an active partner in the fund,” said Yves de Balmann, co-chairman of Bregal, in the statement.
In addition to backing Englefield in the UK, Bregal also participated in the E1.5bn spinout from Deutsche Bank of private equity firm MidOcean Partners earlier this year.
Center Partners, with offices in New York City and Los Angeles, was founded in 1986 by Lester Pollack, Centre Partners and its affiliates have invested over $3bn of equity capital in more than 80 private equity transactions.
The Brenninkmeijers are part of a recent trend of wealthy European families committing large cornerstone investments to private equity firms. In January, the Halley family, which is the largest shareholder in the Carrefour retailing group, set aside E700m for co-investment in Change Capital, the start-up private equity business launched by Marks and Spencer chairman Luc Vandevelde. The firm has access to E1bn for investment.
“Through our diligence on a large number of American and European firms, we acquired keen insight into the private equity market as a whole, as well as the quality of the investment opportunities available and the quality of professionals in the industry,” said Louis Brenninkmeijer, co-Chairman of Bregal.