Triton closes in on hard-cap for debut mid-cap fund – exclusive

The firm has already exceeded its initial target for the fund, which will back businesses across the DACH and Nordic regions.

Northern Europe-focused Triton has already exceeded the initial fundraising target for its debut mid-market fund and is closing in on its hard-cap, Private Equity International has learned.

Launched in the first quarter of last year, Triton Smaller Mid-Cap Fund I has secured €353 million in commitments to date, above its €350 million target, and has set a hard-cap of €400 million, according to a source with knowledge of the fundraising.

Triton declined to comment.

The fund will invest in businesses looking for investment of between €20 million and €50 million across the DACH and Nordic regions. It will stick to the firm’s core sectors: industrials, business services, and consumer and health.

The fund held an official first close on €176 million in August and is already around one-third invested in three platform investments: Akeab, a Swedish provider of civil contracting and excavation services; univativ, a personnel service based in Germany; and BFC, also based in Germany, which produces clamping profiles for exterior sealings used in cars.

It is understood the fund has attracted commitments from both existing and new investors. Triton is also investing the €3.5 billion Triton IV fund. That vehicle, a 2013-vintage, was delivering a gross multiple on invested capital on realised and partially realised investments of 1.4x as of 30 September, according to market sources.

The Smaller Mid-Cap Fund is the latest business line for Triton, which has been expanding over the last few years. In 2015, the firm launched the Triton Value Fund, an open-ended vehicle that takes minority positions in publicly-listed companies. Last year PEI reported the firm was seeking third-party capital for the vehicle.

In 2014 the firm closed its first dedicated debt fund on its €500 million hard-cap, as reported by sister title Private Debt Investor.