Capvis closes Fund IV on €720m hard-cap

The oversubscribed fund, which exceeded its €600m target, had a re-up rate of more than 80%.

Capvis Equity Partners has closed its latest buyout fund on its €720 million hard-cap, after less than a year in market.

The fund, which was oversubscribed, had a re-up rate of more than 80 percent, according to a statement. It also attracted a number of new investors from across the globe, particularly from North America. Local German and Swiss institutions contributed more than a third of the capital raised.

Capvis’ investor base includes public and corporate pension plans, insurance companies, sovereign wealth funds and fund of funds.

Capvis launched the fundraising for Capvis Equity IV in February last year, targeting €600 million. The firm is understood to have held a first close last summer, when it had collected more than €300 million for the fund.

“We are delighted that so many of the existing investors have demonstrated confidence in the Capvis’ strategy by committing to the Fund,” Daniel Flaig, a partner at Capvis Equity Partners, said in the statement.

The fund will invest in mid-sized companies in German-speaking Europe. As with previous funds, Capvis said a majority of investments made by the vehicle were expected to originate from either family-owned companies or larger corporates.

MVision Private Equity Advisers acted as exclusive fundraising adviser for the Fund. Latham & Watkins acted as legal counsel.

Fund IV had the same target as its predecessor fund, CapVis III, a 2008-vintage. Investments from Fund III include natural clothing provider Hessnatur, medical company Ondal Group, and Bartec, which CapVis sold together with Partners Group to Charterhouse Capital Partners in July last year, netting the firm a return of more than 3x.

German-speaking Europe remains an attractive bet for many LPs. In the summer, EMERAM Capital Partners, consisting of two former Apax executives and two from The Riverside Company, is understood to have held a first close on its maiden fund, having collected more than half of its €350 million target.

In July, Invision Private Equity, a lower mid-market firm operating in the German-speaking market, closed its fifth buyout fund on its €285 million hard-cap, while Deutsche Private Equity hit its €350 million hard-cap in April.

In addition, Paragon Partners, another private equity firm operating in German-speaking markets, will come to market shortly as it looks to raise approximately €350 million for its successor fund, PEI reported last month.