Keensight holds €200m first close

The fund, which only came to market in May, is targeting a €250m final close by year-end

Keensight Capital, a European growth investor, has held a first close for its Keensight IV on its €200 million target.

The Paris-based firm, which spun out from R Capital, a subsidiary of the Rothschild Group, last November, aims to hold a €250 million final close by the end of the year, according to a statement.

It is unclear how many existing LPs re-invested in the fund. Keensight was not immediately available for comment at press time.

The Rothschild Group will invest in the fund, along with various European institutional investors, including pension funds, insurance companies and banks.

Keensight IV will back profitable companies across Europe with high-growth potential and revenues between €10 million and €150 million, the firm said.

The firm invests between €10 million to €30 million, with or without leverage, in minority or majority shareholding positions. It typically targets investments in the internet and media, information technology, healthcare, energy and services sectors.

Keensight’s fourth fund aims to collect more than the €100 million that was raised for R Capital Fund III, the vehicle acquired by the Keensight team when it spun out of R Capital. However, by co-investing with LPs, the team deployed approximately €150 million from Fund III, a source told PEI in May. This vehicle is now almost fully invested.

Since the spin-out, Keensight has completed two investments. In April, it invested an undisclosed amount in Menix, a French producer of orthopedic prostheses and dental implants, alongside the company’s management and fellow private equity groups LBO Partners and Turenne Investissement. Keensight also took a majority stake in French open-source software business Smile in January.

In February, Keensight sold Octo Telematics, a provider of telematics services and systems for the insurance and automotive markets, to Russian group Renova.

Since the formation of the former R Capital team 15 years ago, it has invested in 37 companies and exited 27. The current fund’s portfolio companies have achieved an average annual growth rate of 24 percent over the last five years, Keensight said.