Essling Capital, the French small- and mid-cap private equity firm, has launched its second co-investment fund, immediately after the close of its predecessor, according to a statement from the firm.
Essling Co-Invest 2 is targeting €100 million to acquire minority stakes in large buyouts. The fund is expected to hit first close in October.
The launch comes straight after predecessor Massena Opportunities Millésime 1, which raised €100 million, made its seventh and final deal. It made a $15 million investment in Staples, the North American office retailer, taking it private in partnership with Sycamore Partners. MOM 1 has been in investment mode for 14 months.
“The portfolio’s average entry multiple is less than 7x EBITDA, far below the average within the reference markets,” the firm said in the statement. “Capital was deployed over a short period of time, thereby decreasing the overall expected duration of the fund to 6-7 years.”
Essling’s funds are designed to be flexible and provide more liquidity to investors than the typical private equity fund. They have an investment period of 12 months and if any capital is not invested, it will be returned to the investor. Investors only pay fees on invested capital.
All of Essling’s funds have a hurdle rate of 7 percent, PEI reported in April.
Essling spun off from Paris-based investment manager Massena Partners in April. It brought with it €1 billion in private assets under management, with the aim of doubling that within three years.