Frankfurt-based lower mid-market investor Steadfast Capital has held a first close for its third fund on €104 million. Athos Partners acted as placement agent for the fund, which is targeting €250 million.
Formerly BHF Private Equity, Steadfast was rebranded under its current name in 2005. The firm focuses on investing in medium-sized businesses in German-speaking Europe and neighbouring countries.
Steadfast engages primarily in management buy-outs of companies with enterprise values between €25 million and €150 million, investing in businesses facing succession issues, spin-offs from larger groups and secondary buy-outs for other institutional investors. The firm also provides expansion capital for growth opportunities.
Fund III will follow the strategy of its predecessor fund that collected €193 million in 2007. Limited partners in Steadfast’s third fund include London-based Electra Partners and AXA Private Equity. In 2008, Electra purchased AXA’s €45 million interest in Steadfast Capital I, which collected €305 million in 2001.
Steadfast made one investment in 2010, according to its website, acquiring ProFagus, a European manufacturer of charcoal, briquettes and associated ecological fire-lighters. The company also refines and markets industrial by-products in the food and pharmaceutical industry, such as acetic acid and smoke flavours.