Switzerland’s CGS holds CHF65m first close

CGS Management, a Swiss buyout firm, has raised €65m for a first close of its second fund, which focuses on a buy and build strategy in the Swiss and German-speaking countries.

CGS Management, a Swiss private equity firm, has held a first close of its second fund, CGS II, with CHF65 million (€41 million) of commitments.
Marketing for the fund began in February of this year with a CHF150 million target. Lars Niggemann, associate partner at CGS Management, said that the firm has set a hard cap of CHF180 million for the fund with a final close expected by January or February of 2007.
Niggemann added that a first close of CHF65 million was higher than the CHF40 million to CHF50 million expected when the fund was launched earlier in the year: “One could say demand has been strong for the fund, but we have not increased our hard cap to CHF400 million or CHF500 million as that would involve growing our team exponentially and that is not possible at the moment.”
Investors in CGS II include Swiss and German funds of funds, banks and family offices. Niggemann said that fundraising will focus on European investors but “we’re absolutely open to others, including the US where have added one investor but we’re not focusing on fundraising there. We’ll be going to the UK and France in the next few weeks”.
Niggemann said that no placement agent is being used for the fundraising.
CGS II will follow a similar buy and build strategy to its predecessor, and is expected to build three to five clusters from up to 15 investments in companies with revenues ranging from CHF50 million to CHF80 million in Swiss and German-speaking countries.
Target sectors include electronics and engineering, machinery and equipment and plastic production.