Cipio Partners, a direct secondaries firm with offices in Luxembourg and Munich, has held the final close on its latest direct secondaries and growth vehicle, Private Equity International has learned.
The firm took around 18 months to raise €174 million for Cipio Partners Fund VII, according to managing partner Diana Meyel. Fund VII's target was €160 million.
A range of European and US institutional investors and family offices committed to the vehicle, including the European Investment Fund, UBS Asset Management and Austria's Capital Bank – GRAWE Gruppe.
The fund will not use a fund-level credit facility, Meyel said.
Fund VII will be deployed with a combined direct secondaries and growth strategy, picking up stakes from existing investors in expansion-stage technology companies and supporting their growth with additional primary capital.
The firm is interested in both single stakes and portfolios, according to Meyel.
“The fund will attempt to tap into two European market dynamics,” she added. “One is that the average time to exit has increased to more than seven years, which does not fit well with a 10-year fund structure. The other is the lack of growth capital in Europe.”
Fund VII has already completed three investments: UK and German cloud communication firm tyntec Group; Irish telco software provider Openet Telecom and Danish social media management software provider Falcon.io.
The firm's previous fund, the 2009-vintage Fund VI, closed on €137 million, below its target of €200 million, according to PEI data.
Exits from that fund include Impinj, an RFID device manufacturer that floated on the NASDAQ, and online market BuyVIP, which was sold to Amazon.
Cipio was founded in 2003.