Steadfast drives 4x auto industry exit

The Nick Money-Kyrle led private equity firm has agreed to its second big exit of the year, scoring a 4.2x return on its 2006 investment in FEP Fahrzeugelektrik Pirna.

Steadfast Capital has sold its majority share in FEP Fahrzeugelektrik Pirna, a producer of electronic connectors and oil pressure switches for the automotive industry, generating a 4.2x investment multiple and an internal rate of return of 33 percent. 

The firm sold its stake to an undisclosed American strategic investor. Terms of the deal were not made available. 

The firm, which is based in Frankfurt, acquired a majority stake in FEP in 2006 for an undisclosed amount. Through its investment, Steadfast contributed to FEP’s expansion into China, where it established a subsidiary. 

FEP was Steadfast’s second announced exit on the year. In June, the firm sold its stake in the nanocomposite coating company Cetelon Group for an undisclosed amount, generating a money multiple return of 3x and an IRR of 31 percent. 

Earlier this year, Steadfast held a first close on its third capital fund, hitting €104 million on a €250 million target. 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 Capital Fund II raised €193 million in 2006. 

Steadfast, which was known as BHF Private Equity until 2005, launched in 2001 to target investments in German-speaking and Benelux countries. The firm typically invests in management buyouts in companies with enterprise values of up to €150 million.