Quilvest raises $1.3bn in 2013

Commitments included three mandates from pension funds and sovereign wealth funds.

Quilvest Private Equity, the buyout arm of Luxembourg-listed Quilvest Group, raised $1.3 billion in 2013 across its various vehicles, well ahead of its annual $500 million target.

The fundraising push, which was partly driven by three new mandates from sovereign wealth and pension funds, takes the group’s assets under management above $5 billion, according to a statement.

Quilvest Private Equity has a number of annual funds from which it makes direct investments. The investments in QS Companies, a vehicle which invests directly in companies globally on a deal-by-deal basis, and QS Properties, which targets direct investments in real estate, were oversubscribed.

Quilvest Private Equity also manages 16 fund of funds vehicles, including QS PEP 2012 which held a $150 million final close in May last year.

QS PEP Core, the firm’s successor fund of funds, held an $80 million first close in January 2013; it hopes to raise a maximum of $400 million for this fund, plus another $300 million for separately managed accounts, parallel to this vehicle.

In total, the firm has so far raised approximately $400 million of this $700 million target. It is looking to close QS PEP Core in the third quarter of this year, Michel Abouchalache, chief executive of Quilvest Group and Quilvest Private Equity, told Private Equity International.

“Fundraising significantly improved in 2013,” Abouchalache said. “LPs put more money to work in private equity and this worked in our favour. Many investors have a more positive state of mind given the expectations that systemic risk has significantly diminished specifically in Europe and certainly in the US and emerging markets. There’s also a flight to higher yielding asset classes due to lower interest rates.”

Across its global private equity investment platform, Quilvest Private Equity committed more than $700 million, with a 50 percent split between new direct and indirect investments. The fund of funds platform committed over $350 million to 30 managers globally.

The firms also deployed $210 million through QS Companies and $34 million from QS Direct. The latter is a direct investment fund that invests $6 million or less per deal in US, Europe and Latin America.

In addition, Quilvest Private Equity invested $81 million in real estate through its QS Properties vehicle.

Quilvest, which was originally established as the wealth management office of the Bembergs, the German/Argentinian family behind the Quilmes beer brand, has been investing in private equity since 1972.