Exclusive: Alchemy nears final close on Fund III

The fund will hold a £600m first and final close in the next few weeks.

UK-based Alchemy Partners is close to wrapping up fundraising for its Fund III, according to a source familiar with the matter.

The vehicle, which is “significantly oversubscribed”, will hold a first and final close in the next few weeks, according to the source.

The fund came to market last November and is targeting £600 million (€724 million, $1 billion) for distressed and special situations across Europe.

It is understood Probitas Partners is raising the fund. Both Alchemy and Probitas declined to comment.

The firm’s Fund III will be slightly bigger than its previous fund, a £500 million vehicle that it raised in 2011. Investors in this vehicle included Greater Manchester Pension Fund, Industriens Pension, San Diego City Employees' Retirement System and Scottish Widows Investment Partnership, according to PEI’s Research and Analytics division.

Alchemy was founded in 1997 by Jon Moulton, Martin Bolland and Eric Walters. All three of them have since left the firm. Alchemy is currently led by Dominic Slade, Ian Cash and Frits Prakke.

Since inception it has invested £3 billion in more than 130 transactions across Europe into a broad range of sectors and throughout capital structures, according to its website.

Alchemy is not the only firm raising capital for investments in companies that are suffering due to macroeconomic challenges. Rutland Partners, a UK-based turnaround firm, held a £147 million first close for its third fund just before Christmas, PEI reported exclusively in January. Rutland started fundraising in February last year, targeting £300 million.