Charterhouse X holds final close on €2.3bn – Exclusive

The final close below the fund’s initial target of €3bn coincides with its third deal.

Charterhouse Capital Partners has held a final close on its tenth fund on €2.3 billion, Private Equity International has learned.

Charterhouse Capital Partners X, which officially began marketing in January 2015 and had an initial target of €3 billion, held an initial close on €1 billion in May 2015 and a first close on €1.5 billion in September 2015.

According to an investor source, Charterhouse felt comfortable with the final size of the fund, as it will provide greater opportunity for LP co-investment. 

Charterhouse declined to comment.

Investors in Fund X include the Massachusetts Pension Reserves Investment Management Board, the Virginia Retirement System, the Maine Public Employees Retirement System, the Public Employees Retirement Association of New Mexico, and the Washington State Investment Board according to PEI data.

The fundraise followed a turbulent year for Charterhouse in which it became embroiled in a legal battle with one of its former directors, Geoffrey Arbuthnott. Arbuthnott’s claims were rejected by a judge in the Chancery Division of London’s High Court. He subsequently appealed against the verdict, but his appeal was thrown out by the courts in May 2015.

Fund X made its debut investment in October 2015, acquiring French pharmaceutical company Cooper from French investment company Caravelle in a deal valuing the business at around €700 million, as reported by PEI.

The firm has since made two further investments from the fund. In September it acquired French technology company Sagemcom from the Carlyle Group. It has just agreed its third deal, the acquisition of MEC3, an Italy-based manufacturer and exporter of gelato and pastry ingredients. It is understood the transaction valued the business at between €350 million and €400 million.

Its predecessor, the €4 billion Charterhouse Capital Partners IX, a 2009-vintage vehicle, invested in 13 portfolio companies, has made eight exits to date, generating an average realised return of more than 3x, PEI understands.