Bregal Investments, the €2.5 billion ($3 billion) private equity group, has appointed a high profile industry figure to head up its fledgling fund of funds business.
Bregal, which invests on behalf of Cofra, the Switzerland-based group managing the wealth of the Brenninkmeijer family and which operates out of offices in New York and London, has hired Chuck Flynn, the former head of private equity fund investment at Deutsche Bank.
Flynn joined Deutsche in 2001 after helping to build and manage the global fund of funds business of AXA Private Equity. At Deutsche, he inherited a $4 billion portfolio of private equity fund investments which in 2003, following the dissolution of DB Capital Partners, was integrated into the bank’s asset management division.
Following Flynn's departure, Deutsche's fund of funds investments team comprises eight investment professionals based in New York and London.
According to a Deutsche spokesperson in New York, this team will continue to manage the bank's fund portfolio currently valued at $1.6 billion. Stephen Burkh, CEO of Deutsche's institutional business in the Americas, would support the group on an interim bases, the spokesperson said.
At Bregal, Flynn will be overseeing the management of $750 million allocated to US and European buyout fund investment.
Filling the vacancy at Bregal Fund of Funds, as Flynn’s new vehicle will be known, completes the three-tier structure that Bregal has been looking to build since its inception in 2002.
In 2003, Bregal invested €650 million in Englefield Capital, the London-based European mid-market firm founded by former Warburg Pincus dealmaker Dominic Shorthouse. Another $600 million was committed to Centre Partners, a New York-based private equity firm investing in US midsize companies.
Commenting on Flynn’s arrival at the firm, Bregal’s co-chairman Louis Brennikmeijer said in a statement: “We are looking to build a well-diversified portfolio of premier private equity fund investments, based on a disciplined, ‘bottom-up’ investment process that emphasises in-depth fundamental research, strict attention to downside risk, and creating value-added partnerships with fund managers.”
Bregal Fund of Funds will invest between €20 and €70 million across a range of fund sizes and sector strategies. In the statement, the firm emphasised that the programme will be “managed and operated entirely separately from the Englefield and Centre Partners investments.”