Edmond de Rothschild Capital Partners, the Parisian private equity firm backed by the Edmond de Rothschild group, has held a final close of its debut private equity fund at €210 million ($263 million).
The final close of the Edmond de Rothschild LBO Fund, ahead of its €200 million original target, comes 15 months after the first close in July 2003 on €87 million. The fund was launched in October 2002.
Backed by a cornerstone investment of €30 million from the Edmond de Rothschild group, the fund attracted significant interest in France as well as abroad. A third of commitments came from non-French investors.
According to a statement, the investor base comprised financial institutions (36 percent), funds of funds (26 percent), pension funds (24 percent), family offices (9 percent) and corporates (5 percent). Institutional investors include Adveq Management, Danske Private Equity, Kredietbank Luxembourg and Mederic among others.
Led by joint managing partners Eric de Montgolfier and Erick Fouque, the firm’s stated investment strategy is to focus on growth strategies such as buy-and-build and roll-outs rather than seeking value creation through financial engineering.
The fund has made two investments to date through the MBOs of French luxury childrenswear brand Bonpoint and truck rental company Via Location. Focusing on the French lower middle-market sector, the firm aims to invest between €10 million and €40 million in companies with enterprise values of between €30 million and €150 million.
According to Montgolfier, with the fund closed, the firm hopes to recruit a further three investment professionals to bring the team up to 'an ideal size' of eight professionals to invest the fund in its target of 10-12 deals per year.
SJ Berwin Paris provided legal advice to the firm and Altium Capital acted as placement agent on the non-French aspects of the European fundraising.