Quilvest closes latest fund of funds on $150m

The Luxembourg-listed firm also is in the market with another fund of funds with a $400m target, for which it held a first close on $80m in January.

Quilvest & Partners has held a $150 million final close on its latest fund of funds vehicle, QS PEP 2012, as part of a $680 million fundraising push.

The Luxembourg-listed investment group also is raising an immediate successor fund, QS PEP Core, a four-year fund of funds with a maximum target of $400 million. This fund held an $80 million first close at the end of January, Michel Abouchalache told Private Equity International.

Historically, the firm has raised capital annually, as this “offers investors a flexible alternative to traditional three-year funds of funds commitment”, according to its website. But the firm is now looking to move away from this model.  

“It was more practical for investors from an admin[istrative] stand-point to move to a four year programme instead”, Abouchalache said.  “A lot of our investors have been with [these funds] from QS PEP 2002 to QS PEP 2012, so directing ourselves to a more traditional format is easier for them. At the same time it is logical with the discipline that one should have in fund of funds investing to ensure [investors] don’t miss the good vintages in one particular year. It is a change, but it’s a win-win solution for everybody,” he added.  

A lot of our investors have been with [these funds] from QS PEP 2002 to QS PEP 2012, so directing ourselves to a more traditional format is easier for them. At the same time it is logical with the discipline that one should have in fund of funds investing to ensure [investors] don’t miss the good vintages in one particular year. It is a change, but it’s a win-win solution for everybody

Michel Abouchalache

In an interview last year, Abouchalache spoke to PEI about the pressures of year-by-year fundraising. “On December 31 every year, I celebrate a good fundraising year. On January 1, I wake up and think ‘Damn – I have to raise another $500 million’.” 

The firm aims to put between $200 million and $350 million to work per year. “But you won’t see us going to $500 million because we’re not doing too many large caps,” Abouchalache said at the time. 

Quilvest said QS PEP Core will invest in top-quartile small to mid-cap funds in the buyout and growth space. It will back approximately 10 GPs per year, but will remain “opportunistic” and consider additional strategies such as distressed funds, secondary funds or emerging managers, the firm said in the statement. The fund will also be more focused on the US, and “to a lesser extent” to Europe, with “some exposure” to emerging market funds. 

In addition to QS PEP 2012, Quilvest also said that it had closed a $300 million real estate fund, QS REP II – which will make both direct and fund investments – and a $230 million fund called QS Capital Strategies, which will invest in small to medium sized US companies predominantly via debt securities. Quilvest said the latter vehicle was “significantly oversubscribed”.

Quilvest is a global wealth manager, with approximately $22 billion of assets under management. The firm, which was originally established as the wealth management office of the Bembergs, the German/ Argentinian family behind the Quilmes beer brand, began investing in private equity in 1972. Its private equity division invests in small and medium sized companies both directly and through funds.