Investindustrial closes Fund VI on €2bn hard-cap

Raised in just three months, the fund includes a GP commitment of 10%.

Southern Europe-focused buyout firm Investindustrial has closed its sixth fund on its €2 billion hard-cap after just three months on the road.

Investindustrial VI, which was oversubscribed, is the first fund of its size focused primarily on Southern Europe, according to a statement from the firm.

It is understood that Investindustrial has made a GP commitment to the fund of 10 percent.

The vehicle’s investor base is made up of 47 investors, with 54 percent of the capital committed by European investors, 41 percent from the United States and 5 percent from the rest of the world. More than 80 percent of the fund’s total comes from existing investors.

Fund VI investors include Harvard Management Private Equity Corporation, ATP Private Equity Partners, and funds of funds managers HarbourVest Partners, Adveq, AlpInvest, Aberdeen Asset Management and Adams Street partners, according to a PEI Research & Analytics.

The fund’s predecessor, Investindustrial Fund V, closed on its hard-cap of €1.25 billion in April 2013. Investors in that fund include Swedish national pension fund AP Fonden 2, Ardian, Neuberger Berman, Princeton University Investment Co., Allianz Capital Partners and the Alaska Permanent Fund, according to PEI Research & Analytics.

“We are very pleased that our consistent performance in a difficult market has been recognised by our partners,” Investindustrial managing principal Andrea Bonomi said in the statement.

“The opportunity set to invest in the European mid-market is vibrant. With the new programme, we will continue to invest in our team with the objective of reinforcing our position as one of Europe’s most complete private equity groups and the dominant regional player in Southern Europe.”

Lazard acted as placement agent and Paul Hastings acted as legal advisors for the fundraise.

Fund VI will continue the strategy of its predecessors, investing in European mid-market businesses headquartered in Italy, Spain, Portugal or Switzerland and with strong potential of internationalisation.

Investindustrial, which takes an “industrially-driven” approach, invests across three main sectors: consumer, retail and leisure; industrial manufacturing; and services. The firm’s team of 75 professionals operate out of offices in Switzerland, Barcelona, London, Luxembourg, New York and Shanghai.

The firm is still investing Fund V, which has five portfolio companies, according to its website. These include British luxury carmaker Aston Martin, in which Investindustrial invested €190 million in December 2012 for a 37.5 percent stake in a deal valuing the business at €940 million; Italian architectural lighting business Flos, which it acquired in 2014 in a deal valuing the business at around €400 million; and value holiday car rental company Goldcar Spain, of which it acquired 80 percent in a deal valuing the business at €500 million, as reported by Private Equity International.

In December 2015 the firm acquired luxury shoe maker Sergio Rossi for an undisclosed sum.

In its EMEA Private Equity Market Snapshot published in October S&P Capital IQ reported that Iberia was witnessing the early stages of a private equity revival, although investment remained challenging, with volatility in activity and deal values year-on-year, as reported by PEI.

The snapshot found the number of private equity investments in Iberia for the first three quarters of the year down 8.5 percent on the same period last year at 203, with deal value down from €5.8 billion in 2014 – largely thanks to big-ticket deals – to €2.3 billion in 2015. Local firms accounted for 79 percent of the transactions in the first nine months of 2015.