Charme II reaches 2.5x return on final exit

The sale of Fund II’s remaining investment comes as the Milan-based firm continues to raise Charme III, which is targeting €500m.

Milan-based Charme Capital Partners has exited the remaining investment in Charme II, selling blood purification treatments business Bellco to medical technology company Medtronic, according to a statement from the firm.

Charme II was raised in 2009 with total commitments of €340 million. Now fully divested, the fund has realised a 2.5x return and a gross internal rate of return of 33 percent, it is understood.

The sale of Fund II’s final investment means the Charme team can focus fully on its latest fund, which is in market targeting €500 million.

Charme III, which is a pan-European vehicle, has already collected €450 million from a mixture of international institutional LPs, family offices and industrialists, as reported by Private Equity International. It is understood that the vehicle does not have a hard-cap.

In November Charme set up in London, hiring three former Doughty Hanson partners – Julian Huxtable, Christopher Fielding and Francisco Churtichaga – to run its new office, as reported by PEI.

The team will invest across Europe, with Huxtable and Fielding focusing on the UK market, Churtichaga focusing on Spain, and the Milan team focusing on opportunities in Italy. Charme III will target mid-market companies with enterprise values between €100 million and €500 million, seeking to partner with shareholders and management teams across a range of business sectors in growth and internationalisation opportunities, both through acquisitions and organically.

Charme’s first fund, a 2003-vintage €186 million vehicle focused on investments in the consumer and luxury sector in Italy, generated returns of 2.1x, according to the firm.

Bellco provides blood purification treatments for chronic, acute and newborn patients, and has created therapies and systems for the treatment of renal failure, multiple organ failure and sepsis.

Charme acquired Bellco in April 2012, at which point around 90 percent of its revenues came from Italy. Today Italy accounts for less than 50 percent of revenues, with China the company’s largest growth market. Charme worked with Bellco to strengthen its management team and supported international consolidation in Canada, Brazil and China, as well as strengthening the company’s clinical, scientific, and research and development capabilities.

Dublin-headquartered Medtronic, which is listed on the New York Stock Exchange, acquired Bellco to bolster its legacy renal access business and as a “foundational component” of its newly-formed Renal Care Solutions business, it said in a statement.

Other investments in Charme II include insurance telematics services business Octo Telematics, which was acquired by Renova Group.