Cinven approaches €6.5bn fund close

The pan-European buyout firm is understood to be oversubscribed for its sixth flagship vehicle.

Pan-European buyout firm Cinven is expected to close its sixth fund at around €6.5 billion at the end April.

Although the fund is understood to be oversubscribed, the firm is still talking to a number of investors and has yet to decide whether to hold a first and final close at the same time.

The firm began pre-marketing last year without a target or hard-cap but indicated to investors that its latest vehicle would be in line with its previous funds.

Cinven's Fifth Fund, a 2012-vintage-vehicle, closed on €5.3 billion, while Fund 4 closed on €6.6 billion in 2006.

Cinven declined to comment on the fundraising.

Fund 6, for which the private placement memorandum was circulated in January, will be the first vehicle raised since Stuart McAlpine replaced Hugh Langmuir as managing partner, announced in September. Langmuir, who is now executive chairman at the firm, had served as managing partner since 2009. In a statement announcing the move, the firm said that Langmuir would lead the fundraising.

The terms of the latest fund are also understood to be as conservative as its previous vehicles.

Some other pan-European funds currently collecting capital are marketing vehicles offering different terms, including Advent International, which is targeting €12 billion for its eighth vehicle. The firm is collecting capital without offering investors the reassurance of a performance hurdle, as reported by Private Equity International.

Apax Partners launched its seventh flagship vehicle in January targeting $7.5 billion, split between commitments paid out through a deal-by-deal waterfall and those returned through a more typical European fund model.

They follow EQT, which held a first and final close for its seventh flagship vehicle in August on €6.75 billion after just six months in market. The fund has a six-year investment period and was the firm’s first to close since Thomas von Koch took over from Conni Jonsson as managing partner.

Other European funds currently in market include Permira, which is talking to investors as it raises €6.5 billion for its fifth fund, and BC Partners, which is seeking to collect €7 billion for its tenth vehicle.

Cinven’s existing vehicle, Fund 5, is about 75 percent invested with room for one more investment. Among its portfolio companies are French medical diagnostics company Labco and Germany’s Synlab Group, which have merged.

The firm is looking at potential healthcare investments including US medtech companies with ambitions to expand into Europe, as reported by PEI. In financial services, the firm is eying sectors including payment infrastructure, consumer finance and speciality finance and leasing.