Pechel closes Fund III on €165m

The French growth investor has closed its third fund after eight months in the market. About 60 percent of the commitments came from existing investors.

Pechel Industries Partenaires has closed its third fund on €165 million. It began marketing the fund in February and held its second close in March with €101 million in commitments from existing investors.

Investors in the fund include international pension funds, fund-of-funds and family offices.

Pechel Industries III, which is €40 million larger than its predecessor, will follow the same strategy as Funds I and II of investing in development capital and buyouts of companies with enterprise values of between €30 million and €300 million. The fund will pursue opportunities in French-speaking European companies.

Jean Gore, managing director of the firm, told PEO that the fundraising had progressed as expected without being adversely affected by wider market conditions.

Last week PEO reported that LBO France, another Paris-based firm, would go to market in January 2009 for its third small-cap fund, Hexagone III, which targets buyouts of companies with enterprise values of €10 million to €100 million.

Pachel was established in 1995 as a private investment vehicle for the Worms, Agnelli and Arnault families. Today it is an independent private equity firm with more than €400 million under management.