Nextfund Capital launches second fund

French private equity firm Nextfund aims to raise between €30m and €50m for investment in growth capital companies with technology drivers.

Paris-headquartered Nextfund Capital has launched Nextfund II, a vehicle with a target of €30 to €50 million ($40 to $67 million).
 
The firm describes its investment strategy as being halfway between traditional venture and LBO, focusing on technology-driven businesses. The new fund will look to invest in predominantly French enterprises with revenues of between €2 and €20 million.
 
In 2003, the firm raised what president and managing partner Maurice Khawam described as “a small fund” in 2003, predominantly backed by family offices. Khawam did not disclose the size of  Nextfund I, which to date has completed four investments, of which one has already been exited.
 
In an interview, Khawam indicated that the firm had already received firm commitments from one institutional investor and one fund investor and would be going on the road to market the new vehicle in 2005.
 
Khawam said the fund would seek to target institutional investors and family offices.
 
Commenting on the firm’s investment strategy, Khawam said: “We believe we are offering a unique proposition in Europe. Providing growth capital with a technology-driven, sectoral approach is a very underdeveloped arena.”
 
The fund is aiming for a first close by the end of Q1 next year, hoping to achieve a final close before the end of 2005.
 
Nextfund Capital comprises a team of four investment professionals: managing partners Khawam, Jean-Francois Grenon and Gabriel Amiel and partner Francois-Pierre de Feydeau.