PA Schools commit to Cinven

The Fifth Cinven Fund launched in March and is targeting less than its predecessor's €6.5bn fundraising in 2006.

The Commonwealth of Pennsylvania Public School Employees’ Retirement System has committed €100 million to Cinven’s fifth private equity fund, which is targeting €5 billion for European buyout investments between €150 million and €600 million in companies with enterprise values between €300 million and €3 billion.

The UK private equity firm launched the fund in March and will focus its investments on UK, France, Germany and Netherlands-based companies, according to documents obtained from PSERS.

The €5 billion target is a downshift from Cinven’s fourth fund, which raised €6.5 billion on a €5 billion target in 2006. Firm head Hugh Langmuir late last year sat down with Private Equity International to discuss why Cinven wouldn't be mimicking some of its mega-buyout peers.

“I think they’re being realistic,” a source with knowledge of the situation told Private Equity International. “The quantum of money that’s available is less than what it was five or six years ago.”

The Fifth Cinven Fund will hold its first close at the end of the year and does not appear to have a hard-cap.

Credit Suisse is the placement agent for the fund.

Cinven IV has generated a 7 percent internal rate of return and net 1.24x multiple as of 31 March, according to pension documents. The firm is currently in exclusive talks on an undisclosed deal that will fully invest the fourth fund, which is 75 percent invested, the source said.

In addition to PSERS, Cinven’s fifth fund has also received commitments from the School Employees' Retirement System of Ohio and the State Teachers Retirement System of Ohio.