Marlin closes on €325m for first European fund

The private equity firm that specialises in distressed turnarounds has raised its first fund to invest specifically in European buyouts.

Marlin Equity Partners has held a final close on its first European vehicle, Marlin Heritage Europe, with €325 million, above its €200 million target, according to a statement from the firm. 

The fund had a final close after fundraising for just over two months, said managing director, David McGovern, in the statement.

The Los Angeles-based firm has invested in European businesses since 2006. To further those efforts in Europe, Marlin decided to raise a specific Europe-focused fund, the Heritage Europe fund, which will deepen the firm's strategy of investing in technology, business services, healthcare, consumer and manufacturing companies in the lower mid-market. Marlin opened a London office in 2013.

European portfolio companies include Danish payroll provider Bluegarden, which the firm acquired in 2015; Dutch data management software company Asset Control, which the firm acquired in 2013; and German optical software intelligence company Coriant, which the firm acquired in 2013.

“The formation of the Heritage Europe fund is primarily driven by our strong deal flow and the attractive investment opportunities we are seeing throughout Europe,” said McGovern.

The Heritage Europe fund was exclusively offered to existing investors in Marlin's lower mid-market. 

Marlin Equity Partners has closed six private equity funds since its inception in 2005 and has more than $3 billion in assets under management. Since the beginning of 2015, Marlin has acquired 23 businesses, including 11 corporate divestitures. The firm's fifth fund and first buyout fund, Marlin Heritage, held a final close on $412 million in 2014, above its $250 million target. Marlin's previous funds followed a distressed turnaround strategy. 

Kirkland & Ellis LLP served as legal counsel for Marlin Heritage Europe. Credit Suisse Securities acted as an advisor and placement agent in the formation of the Heritage Europe Fund.

Marlin Equity Partners did not respond to request for comment.