Lombard Odier Darier Hentsch, the Geneva-based private bank, is to launch LO Private Equity – Euro Choice II, a private equity fund of funds that will concentrate on mid-market buyout and expansion capital investment in Western Europe.
Euro Choice II is aiming to raise E200m from institutional investors and family offices in Europe and the US. A first close is expected in the fourth quarter of 2002.
Managed by LODH Private Equity Zurich, the fund will be looking to allocate 70 per cent of the capital raised to general partnerships and use the balance for direct investments.
According to the bank, Lombard Odier Darier Hentsch's first private equity fund, a E167.4m vehicle raised in 1999, has successfully followed a similar split strategy and has made eleven investments in European private equity partnerships while investing directly in two companies.
Investors in Euro Choice II will be expected to pay an annual management fee of 1 per cent of committed capital. An 8 per cent hurdle rate will apply.