HQ Capital raising new mid-cap fund – Exclusive

Equita Fund V, which focuses on small and mid-cap companies in German-speaking Europe, has raised almost half its €400m target so far.

HQ Capital, a private equity and real estate investment firm formed by combining three alternative investment managers, is raising a new fund targeting small and mid-cap companies in German-speaking Europe, Private Equity International has learned.

Equita Fund V has raised almost half its €400 million target, according to sources familiar with the matter.

The firm is also on the road gathering capital for several other funds. Its global secondaries fund, Auda Secondary Fund IV, is expected to hold a first close this autumn with about a quarter of its $400m target.

Meanwhile, its $150 million real estate opportunities fund is understood to be on track for a final close in the first quarter of next year.

A spokesman for HQ declined to comment on its fundraising plans and progress.

HQ, which manages more than $11 billion in assets, last week reshuffled its management, appointing Georg Wunderlin as chief executive, Ernest Boles as vice-chairman, and Marcel Giacometti as senior advisor.

In July, the firm held a final close for its seventh fund, Auda Capital VII, a fund of funds vehicle, on $375 million, above its target of $350 million.

HQ was formed last September by combining two US-based investment managers – private equity firm Auda and real estate firm Real Estate Capital Partners (RECAP) – with Germany-based mid-cap buyout firm Equita. Through Auda and RECAP, HQ has been active in private equity and real estate since 1989. Through Equita, HQ has been acquiring majority stakes in companies in the German-speaking regions of Europe since 1992.