Family offices buoy Alpha fundraise

The European mid-market firm has raised over €900m for its seventh fund.

Alpha Private Equity, a European mid-market firm, has raised over €900 million for its latest fund, driven largely by family office commitments.

Alpha Private Equity Fund 7 saw family office commitments jump to 25 percent from 12 percent in its €700 million Fund 6.

Family offices overtook funds of funds and pension funds in APEF7, historically Alpha’s most important investors, a spokeswoman said.

The firm began fundraising in March last year and was affected by uncertainty surrounding the UK’s vote to leave the EU.

“We noticed that US investors’ appetite was bigger at the beginning of the fundraising process, but Brexit slowed this with the return of uncertainty in Europe,” said the spokeswoman.

The investor geographic split for APEF7 was 90 percent European, 9 percent US and 1 percent from the rest of the world. Fund 6 was nearly “100 percent European”, the spokeswoman said.

A recruitment drive is planned to boost the 32-strong team following the fundraise.

Amid record amounts of private equity dry powder, the firm will try to counteract the competitive deal environment by focusing on its ability to source primary deals, the spokeswoman said. In its previous fund, more than 70 percent of deals were proprietary, with secondary buyouts representing less than 30 percent.

The fund is domiciled in Luxembourg and structured as a SICAR, which is supervised by the national regulator, the CSSF. Alpha declined to comment on fees and performance.