Edmond de Rothschild Investment Partners has collected €175 million for its second fund, Winch Capital II, which is targeting €250 million.
The firm anticipates holding a second close in October on about €200 million, and a final close in early 2010. To meet upcoming targets, the fund will be open to foreign investors.
The firm, known for its 20-year history in the development of small and mid-sized European enterprises, has already surpassed the venture capital fundraising efforts of Winch Capital I, which closed on €165 million in 2005.
Winch Capital I established a French institutional subscriber base, with CNP, MACSF, and Swiss Life continuing investment in Winch Capital II. New investors in the second fund include Caisse des Dépôts, BNP Assurances, OFI Private Equity and high net worth individuals.
Between 2006 and 2008, Winch Capital 1 portfolio companies saw an average annual growth of 18.5 percent, with one company in two making at least one acquisition, the firm said.
Winch Capital II targets profitable companies with revenue between €20 million and €250 million. The fund will invest €5 million to €15 million in each portfolio company with an aim to achieve new levels of growth.
In the growth-capital sector, Edmond de Rothschild Investment Partners, a subsidiary of La Compagnie Financière Edmond de Rothschild, manages nearly €350 million. The firm has traditionally dedicated investment funds to European information and life sciences sectors.
La Compagnie Financière Edmond de Rothschild, the French branch of the LCF Rothschild Group, manages about €1.8 billion in private equity assets.