Investindustrial closes on €1.25bn hard-cap

The Southern European-focused firm collected the majority of capital for its Investindustrial V from Europe while the rest came from North America, Asia and Australia.

Investindustrial, a buyout firm focused on Southern Europe, has reached its €1.25 billion hard-cap for its fifth fund, according to a source close to the matter. 

The firm reached its hard-cap in March, the source said. The firm held a €1 billion first close in March 2012, followed by a second close on €1.15 billion in September 2012.  

Investindustrial declined to comment on fundraising. 

We had spent a lot of time sitting down with them. But in the end, most people are coming to the conclusion that for the right GP they are backing, that tail-end risk is not worth giving up relationships that you are otherwise particularly pleased with.

Carl Nauckhoff

Approximately 90 percent of LPs that invested in previous Investindustrial funds re-invested in the new fund, the source said. Two-thirds of the capital came from pensions, foundations and institutional family offices and the fund has “one of the highest concentrations of Ivy League endowments of any European buyout group”, the source said. More than half of the capital for Fund V came from Europe and the rest came from North America, Asia and Australia. 

“Investors invest in GPs with whom they build up a long standing relationship. Our consistent strategy and communication around that strategy has been key,” Carl Nauckhoff, principal and head of investor relations at Investindustrial told Private Equity International in January. 

He admitted at the time that North American investors were particularly negative on the macroeconomic risks in the European Union. “We had spent a lot of time sitting down with them. But in the end, most people are coming to the conclusion that for the right GP they are backing, that tail-end risk is not worth giving up relationships that you are otherwise particularly pleased with,” he said. 

Investindustrial V, which is larger than its €1 billion predecessor, made its first investment in December 2012 when it acquired a 37.5 percent stake in UK luxury car maker Aston Martin. 

Whilst on the fundraising trail, Investindustrial also increased its stake to get full control of PortAventura, a Spanish theme park in November 2012. A month prior, Investindustrial and Trilantic Capital Partners acquired a 48 percent stake in Euskaltel, a telecommunications provider in the Basque region.

Last April, Investindustrial sold motorbike group Ducati to car maker Audi for $1.1 billion, which made a 3x return. In August 2011, the firm also exited Permasteelisa, an engineering business for approximately €600 million. 

In 2012, Investindustrial’s group sales increased by 2 percent, according to the firm’s 2012 annual review. EBITDA grew by 14 percent and the profitability margin grew by 18.5 percent. 

Investindustrial has more than €3.1 billion in assets under management.

In the Private Equity International's 2012 Awards, Investindustrial picked up the awards for firm of the year in Iberia and firm of the year in Italy.