Private Equity Deals & Transactions

Exclusive: Montagu targets €2.5bn for Fund V

The firm joins a number of pan-European funds that are currently on the fundraising trail

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UK-based Montagu Private Equity has come to market to raise €2.5 billion for its fifth fund, PEI has learnt.

The firm launched its private placement memorandum (PPM) approximately two weeks ago, according to sources familiar with the matter.

It is understood Montagu has hired Quest Fund Placement to support them with the fundraising. Both Quest and Montagu declined to comment.

Montagu’s fifth fund will be of a similar size to its predecessor, Montagu Private Equity IV, a €2.5 billion vehicle that was raised in 2010.

Montagu has already exited two investments from this fund. Last November it sold CAP, a vehicle valuation data provider, to Solera Holdings, a provider of risk and asset management software and services, for £288 million (€361 million, $451 million). In December 2013, Montagu sold Polish radio and TV broadcast infrastructure operator Emitel to US-based infrastructure firm Alinda Capital Partners for around $1 billion, netting Montagu a return of more than 2x.

Last September Montagu sold its stake in Euromedic International, a pan-European healthcare services provider, generating a 2x return. Following the sale of CAP, Montagu had returned €2.3 billion to its investors over the last two years, PEI reported at the time.

Montagu joins a number of private equity firms that are currently collecting capital for pan-European vehicles. Bridgepoint continues to raise its fifth buyout fund, Bridgepoint Europe V, which has a €3.5 billion target and came to market in May 2014. It had amassed €2.8 billion by October, PEI revealed earlier.

Meanwhile, Charterhouse Capital Partners is attempting to raise €3 billion for its tenth fund, while Equistone Partners Europe is understood to be raising €1.7 billion for its latest pan-European offering.

PAI Partners, which had already raised €3 billion for its latest pan-European fund by January, is currently seeking to increase the vehicle, which is oversubscribed, to €3.2 billion in order to satisfy investor demand, PEI revealed last month.