Princess commits to 3i and Terra Firma

The Partners Group vehicle, which was restructured and listed on the Frankfurt Stock Exchange earlier this month, has resumed investment activity by putting a total of €30m into two European buyout funds.

Princess Private Equity, a listed investment vehicle managed by Swiss alternative assets firm Partners Group, has signed a €20 million ($26 million) commitment to Terra Firma III, the latest fund being raised by London-based buyout group Terra Firma Capital Partners. The fund will target deals worth between “€500 million and several billion euros” in “unpopular sectors going through regulatory change (including privatisation) and in industries with inefficient capital structures”.

Princess has also made a €10 million commitment to 3i Eurofund V, a €5 billion mid-market buyout fund managed by 3i that will make around 50 investments over the next four years, mainly in Europe but with scope to invest also in Asia.

Commitments from Princess Private Equity, which was formed in 1999, were put on temporary hold while obtaining bondholder approval for a comprehensive restructuring that included the mandatory early conversion of convertible bonds into shares.

Said Stephan Schaeli, head of private equity investment management at Partners Group: “Both Terra Firma III and 3i Eurofund V are vintage 2006 funds which allow Princess to catch up on this vintage year after having suspended its commitment activity earlier this year. The focus now is to achieve a quick ramp-up of the investment level: in the short term, we intend to focus on late 2006 vintage primary funds that will close in 2007 and on some direct investments.”