Electra Partners Europe has closed its first European buy-out fund at E1bn, making it one of the largest first-time funds ever raised in Europe.
Electra’s original target was E750m. Investors in the fund include Abbey National, General Electric Pension Fund, Hamilton Lane Advisors (the New York State Common Retirement Fund and Others), Morley Fund Management, Swiss Re and Yale University. Investment bank Merrill Lynch was the placement agent for the fund.
Nigel McConnell, managing director of Electra Partners Europe, said: “We are very pleased that Electra Partners Europe’s first buy-out fund has been so well received by institutional investors. Our focused investment strategy and value ethos seems to have struck a chord, particularly in the current investment climate.
“Investors also recognise that there is likely to be a strong flow of opportunities in the mid-market arena as European corporate restructuring continues. We are now looking forward to investing the fund in up to 15 companies throughout Europe and delivering good returns for our investors in our first fund.”
Electra’s investment focus is on mid-market buy-outs with an enterprise value of up to E400m. The company intends to make approximately 15 investments in European companies over the next three to four years. It will target niche companies with growth potential, or situations that need significant restructuring, especially in the areas of business support services, consumer goods & services, financial services, industrial and media.
Electra Partners Europe is an independent private equity investment firm. The firm bought itself out from Electra Investment Trust in 1999. At 30 September 2000, Electra Partners Europe had E1.6bn under management and a track record of 98 completed leveraged buy-outs. The business operates from London, Paris and Frankfurt and through associates in Madrid and Milan.
To view PEO's recent interview with Mark Weston from Electra, click here