Exclusive AnaCap holds 500m first close

The financial services-focused firm aims to hold a €750m interim close by the end of summer.

UK-based AnaCap Financial Partners has held a €500 million first close for its third fund, PEI has learnt.

The fund, which came to market at the beginning of this year targeting €900 million, will hold an interim closing of €750 million by the end of summer, according to market sources.

It is understood the majority of LPs re-upped, with approximately 85 percent of the committed capital coming from existing investors.

Placement agent Asante Capital is helping the firm with the fundraise, the sources said. Both Asante and AnaCap declined to comment.

News of AnaCap’s fundraise comes shortly after the firm, which targets investments in the financial services sector, bought AssurOne Group, a French digital insurance broker, from Seventure Partners and Bpifrance. In May, AnaCap agreed to acquire the Brightside Group, a broking business, for 25 pence per share, in a take-private deal that valued the company at £127 million.

The firm made those acquisitions from AnaCap’s second fund, a €574 million 2009-vintage. The firm’s Fund II delivered a net total value to paid-in (TVPI) multiple of 1.80x and a net distributions paid-in (DPI) of 0.25x as of March 30 2014, according to documents from The New Jersey Division of Investment.

Fund II’s companies have shown substantial revenue growth, from €14 million in 2009 to €469 million in 2013, according to the documents – equivalent to a 227 percent compound annual growth rate over the period.

In February, New Jersey proposed to invest €125 million in AnaCap Financial Partners III.

In 2012, AnaCap’s founder Joe Giannamore told PEI that the total amount of the firm’s portfolio debt stood at just €6 million. “Our job is not to put leverage on an asset to make money,” he said. “Our job is to take unloved, poorly structured subsidiaries of large institutions and also entrepreneurial firms and grow them – via actively managed risk capital.”

Click here to read the whole interview with Joe Giannamore.