Exclusive: Aheim targets €100m for Fund II

The German firm, led by former 3i, Apax and General Atlantic execs, is aiming for a €50m first close this summer.

Aheim Capital, a lower mid-market firm in Germany, has come to the market to raise €100 million for its second fund, according to several sources familiar with the matter.

It is understood some of the firm’s existing investors are in the process of re-upping. Aheim, which will put in a GP commitment of at least 2 percent, has already attracted a €25 million commitment from a new European investor, according to one of the sources.

It is understood Acanthus Advisors is helping Aheim to raise the fund. Both Acanthus and Aheim declined to comment.

Aheim II, which has a €125 million hard-cap, aims to hold a €50 million first close this summer. The vehicle will be double the size of Aheim’s debut fund, a €50 million 2007-vintage. Aheim attempted to raise €100 million in 2007 but stopped fundraising after the financial crisis hit, the source said.

Aheim’s maiden fund, which has invested in five companies, is almost fully deployed, with room for one more investment and some capital for add-on acquisitions. For most of the transactions, Aheim co-invested with LPs or asked the seller to stay on board to reduce its equity tickets in order to keep the fund diversified, the source added.

Aheim II will target profitable growth businesses that are headquartered in the German-speaking region. The firm typically writes equity cheques of up to €10 million and targets businesses with enterprise values of up to €75 million. Although Aheim will still consider co-investing, it aims to be less dependent on this in its latest fund.

The firm has so far exited three businesses from Fund I, which have yielded a return of between 2.5x and 3.1x, according to the source.

Aheim was founded in 2007 by three former executives from 3i, General Atlantic and Apax. Peter Blumenwitz spent eight years at Apax Partners in Munich, while Frank Henkelmann worked at General Atlantic for more than five years. Henkelmann was responsible for setting up the firm’s European branches in London and Dusseldorf, after previously working at Morgan Stanley in London and Frankfurt. Herbert Seggewiss worked for 3i Deutschland from 1997 to 2005, prior to which he worked at the private equity department of former German bank WestLB, according to Aheim’s website.

Aheim is not the only German-focused firm on the fundraising trail. Paragon Partners is currently in market attempting to raise approximately €350 million, while Munich-based EMERAM Capital Partners is raising EMERAM Private Equity Fund I, which is targeting €350 million with a €400 million hard-cap for investments in the German-speaking region. The firm held a first close last July and will wrap up fundraising this summer, a source close to the matter told PEI earlier this month.