Finatem’s Fund II holds €74m first close

The German mid-market private equity firm has held a first closing of its second fund with commitments of €74m, secured from new and returning financial institutions.

Finatem, a Frankfurt-based, mid-market private equity firm has held an initial close of its second fund on €74 million ($88 million).

Finatem Fund II was launched at the beginning of the year and has attracted new investors alongside the cornerstone investors from Finatem’s €63 million first fund, which is fully committed.

Natexis Private Equity International, the private equity arm of the French mid-market bank and DZ Private Equity, the private equity division of the German mid-market bank have returned to lead a team of investors including a French insurance company and a French fund of funds.

The fund is on course for a proposed final target of €125 to €150 million and will focus on mid-market buyout opportunities in manufacturing businesses in German speaking countries.

Finatem II has made one investment to date. In December 2003, the fund completed an €11 million investment in Baerbel Drexel, a German consumer healthcare company.

Fund I has made five investments to date and Christophe Hemerle, managing director and founding partner of Finatem confirmed to PrivateEquityOnline that all the portfolio companies are involved in exit talks of some description and said in a statement: “We are very pleased with the first stage of our fundraising campaign. We anticipate more support from LPs as we prepare for some attractive exits later this year.”

Almeida Capital is advising Finatem on the fundraising.