CMP beats target for first third-party fund

Investors clamoured for access to Berlin-based Capital Management Partners' second turnaround fund, which has raised €175m.

Capital Management Partners has closed CMP German Opportunity Fund II on its hard-cap of €175 million, above its target of €150 million. The fundraising took just eight months; the private placement memorandum was launched in May last year, and fundraising closed in January. The fund then waited two months to allow one large investor to finalise its commitment before announcing the close, a source close to the process said. 

The fund garnered sufficient interest to raise as much as €300 million, having been significantly oversubscribed, the source added.  

The firm’s €125 million maiden fund, raised after its inauguration in 2000, has returned about five times the capital invested, according to a source close to CMP. Its most recent exit, the sale of sink manufacturer Schock in December to German buyout peer Equita, yielded a 4.5 times return, a source close to the firm said.

Only one company, plastic packaging manufacturer Rebhan, remains in the CMP Fonds I portfolio following a series of nine exits. That fund is fully invested, CMP said.

CMP is expected to sell Rebhan in the next few months, the source said, and is likely to begin putting the fresh pool of capital to work almost immediately, having built a strong pipeline of potential deals.

Investors in the new fund included Allstate, Fort Washington, Grove Street Advisors (acting on behalf of NEV III), IFM, Parish, Unigestion and Veritas, according to a CMP statement.

Campbell Lutyens acted as financial advisor and placement agent for the fundraising.

The new fund will target distressed companies in Germany, Austria and Switzerland, with equity investments in the €3 million to €30 million range.

Kai Brandes, a managing partner at CMP, said in a statement: “The success of the fundraising in a challenging financial environment is further validation of the macro opportunity in CMP’s target market as well as the firm’s unique experience and value creation approach which sees CMP’s personnel embedded within portfolio companies to execute the restructuring from within.”