German FoF finds €306m

CAM Private Equity has closed its latest fund of funds vehicle more than €100 million above its original target.

Cologne-based fund of funds investment management firm CAM Private Equity has closed its latest fund of funds vehicle, CAM DREI (III).

Rolf Wickenkamp, founding partner at CAM Private Equity, said in an interview that CAM DREI (III) held a final close of €306 million ($366 million), in excess of its original target of €200 million. Wickenkamp added that the vehicle held a first close in October 2004 at €120 million.

No placement agent was used for the fundraising.

Wickenkamp: Looking at Asia for first time

LP commitments to the new fund came from German insurance firms, banks, pension funds and family offices. Wickenkamp said that the investor base was a mix of new investors and existing clients from CAM Private Equity’s predecessor fund of funds, CAM ZWEI (II), which closed in 2001 at €200 million.

Fund II was fully committed by the end of the first quarter of 2004 and invested in 28 underlying partnerships, added Wickenkamp.

The new fund will broadly follow its predecessor’s strategy, said Wickenkamp. “Fund III will aim to make at least 80 percent of its commitments to buyout funds, with the remaining 20 percent allocated to venture,” he said. “In terms of geographical split, it’s roughly 50 percent Europe and up to 50 percent in the US, so that we can invest up to 10 percent in non-US and non-European regions such as Asia. We haven’t so far in Fund III, but it is something we’re looking at.”

Since its first closing, CAM DREI (III) has already made commitments to a number of European and US private equity funds including 2004’s $4.25 billion (€3.57 billion) Providence Equity Partners V; Carlyle Partners IV, which raised $8.75 billion in March of this year; Vestar Capital Partners V, a final closing for which is yet to be announced; CVC European Equity Partners IV, which held a first and final close in July with commitments of €6 billion, making it Europe’s largest fund raised so far; and Electra European Fund II, which closed on €1.25 billion in July 2005.

Founded in Germany in 1998, CAM Private Equity has five partners and six investment directors working out of offices in Cologne, Munich, Amsterdam and Copenhagen in Europe and Greenwich, Connecticut in the US. The firm currently manages in excess of €1.7 billion in assets.