France’s Quadrille eyes €5bn in AUM on back of latest capital raise

The tech and healthcare growth investor has held the final close on its Quadrille Technologies IV fund, smashing its target.

France’s Quadrille Capital is eyeing a major step-up in assets under management over the next five years, having closed its fourth flagship growth equity fund above target.

Jérôme Chevalier_Quadrille
Chevalier: plots New York office

The Paris-headquartered firm raised €511 million for Quadrille Technologies IV, according to a statement seen by Private Equity International. The fund launched in 2018 with a €300 million target and €500 million hard-cap, according to PEI data. Up to half will be invested in Europe.

Fund IV is already 30 percent deployed and has exited two companies: Freshly, which was sold to Nestlé for $1.5 billion; and Expanse, which was sold to Palo Alto Networks for $800 million, according to the statement.

Around 70 percent will be invested directly into companies, with the remainder into funds, partner Jérôme Chevalier told PEI. Many of its direct investments are in companies that Quadrille’s GPs hold in their own portfolios, and the firm selects which companies to invest in and prices and structure the deals itself.

Predecessor Quadrille Technologies III fund, a 2015-vintage, raised €135 million and was backed by investors including BPI France, insurer AG2R La Mondiale and ABN AMRO, according to PEI data.

Quadrille aims to quadruple its AUM to around €5 billion over the next four to five years and is considering opening an office in New York “in the short future”, in addition to its San Francisco presence, Chevalier said. It aims to grow its AUM via growing its public equity fund strategy – with a €1 billion target by 2024; and its direct secondaries strategy.

In Fund IV, LPs can choose whether to commit to the direct investment or fund investment components of the vehicle, Chevalier said, adding that most investors commit to both. The fee structures differ between the two components, with the fund section charging 50 basis points and 5 percent carried interest. The direct component charges less than 2 and 20, resulting in a blended 2 and 20 fee model for an LP that splits its commitment equally across the two portions.

Investors in Fund IV include CNP Assurances, Amundi, EDF, FFP (which is rebranding to Peugeot Invest in March) and other investors across North and Central America, Europe and the Middle East.

The firm wants to widen its LP base across further European countries, North America and Australia, Chevalier said.

Quadrille uses an investment sourcing a strategy it calls Le Hachoir – The Grinder – a 200-slide deck that it uses to ascertain whether a GP is building a firm for the long-term. It has invested in firms including Insight Partners, Andreessen Horowitz, Thoma Bravo and Atomico, according to its website.