Lion set to beat €2bn target by year end

The firm launched its third fund last year to invest in mid-market companies in consumer products, and has made steady progress towards its target.

Lion Capital is expected to beat its €2 billion target in a fourth quarter close of its third fund, a source close to the firm said. The firm has already raised at least €1.4 billion for Lion Capital Fund III.

The third fund, which launched last year, will follow the firm’s traditional investment strategy, focusing on mid-market companies in the consumer products sector, according to documents obtained from the Oregon Investment Council.

Park Hill Group is acting as placement agent for the fundraising.

Lion and Park Hill could not be reached for comment as of press time.

Commitments to the fund include a re-up from the OIC, which committed $100 million in 2010. The Canadian Pension Plan Investment Board has also invested €200 million.

The firm’s previous fund, which raised €2 billion in 2007, has generated a 1.6 percent internal rate of return with a 1x investment multiple as of 31 December, according to the California Public Employees’ Retirement System.

Lion Capital was founded in 2004 by Lyndon Lea, Robert Darwent and Neil Richardson as a lift-out of Hicks, Muse, Tate & Furst. Recent reports indicate the firm may be exploring a possible €2 billion acquisition of Post Foods, which makes Raisin Bran and other cereals.