The Halder Gimv Germany Fund, which was launched earlier this year by German mid-market buyout firm Halder and its controlling shareholder, Belgian private equity house Gimv, has held a first close.
The fund, launched in June with a E150m target, has so far secured commitments totalling E78m, including commitments from institutional investors in Germany, the US, the UK and Japan. A further group of investors are in advanced due diligence, the firm said in a statement.
Halder, which was acquired by Gimv in 2000, will receive an investment of at least 19.9 per cent of the total fund size, up to a maximum of E30m from Gimv. Gimv will also be entitled to a small share of the carry.
The fund will not have a specific sector focus, but will instead look to invest in family-owned companies with turnover of between E25m and E125m. “There are more than 11,000 companies operating in this sector,” says Paul De Ridder, founding partner and managing director of Halder. “Despite a lot of interest, very little has happened in this sector. We have sought to build up a level of trust with businesses and their advisors over the past twelve years which puts us in a strong position when succession issues arise.”
The fund is aiming to make equity investments of between E5m to E20m in around ten to 15 companies. The fund will also look to participate in syndicated deals where suitable. In its two most recent funds, Halder III and IV, the firm invested in 46 companies, including 17 German participations. “We have kept a deliberately narrow focus for our investment strategy over the past twelve years. Almost all of our transactions have been buyouts,” said De Ritter.
The new fund is structured as a Dutch limited partnership and is being advised by Freshfields (legal) and KPMG (tax). Credit Agricole Indosuez will be acting as placement agent for the firm’s fundraising in France.