Hg collects $11bn in Europe’s largest buyout fund to close this year

Europe-focused funds trail behind other major global regions by capital raising so far this year with just $112.4bn closed.

Hg, Europe’s third-biggest private equity firm according to the PEI 300, has amassed the region’s largest buyout fund so far this year, Private Equity International has learned.

The London-headquartered firm held the final close for Saturn 3 on $11 billion in August, according to two sources familiar with the matter. The fund, which launched at the end of last year, had an $8.5 billion target and is the biggest fund closed by a Europe-headquartered firm in 2022.

Saturn 3 is around 22 percent larger than Nordic Capital‘s €9 billion Nordic Capital XI and around 59 percent larger than BC Partners‘ €6.9 billion BC European Capital XI, which closed in October and January respectively, according to PEI data.

Saturn 3 is already around 28 percent invested across two transactions: business management software provider The Access Group and software vendor IFS, PEI understands.

PEI reported in August that Hg had made significant headway with large-cap-focused Saturn 3 and that the firm was expecting to hold the final close on the vehicle that month.

Rede Partners is understood to have worked on the fundraise for Saturn 3.

Hg and Rede both declined to comment for this story.

Hg ranked 17th in this year’s PEI 300, having raised $34.47 billion over the preceding five years.

The firm counts the California State Teachers’ Retirement System, Employees Retirement System of Texas and State of Michigan Retirement Systems among LPs for Saturn 3, according to PEI data.

Hg was expected to launch the next iterations of its small-cap-focused Mercury and private debt-focused Titan vehicles early next year, PEI reported in August.

Fundraising in the first nine months of this year was the second-highest on record with at least $527.9 billion raised by private equity vehicles, according to PEI data. The figure, which was a 14 percent decline on the same period the previous year, surpassed previous records set in 2019 and 2017.

Europe has accounted for around $112.4 billion of the capital raised so far this year, behind North American-focused funds ($478.5 billion), multi-regional funds ($365.7 billion) and Asia-Pacific-focused funds ($129.5 billion).

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