Turenne Capital, a French expansion capital investor in fast-growing companies, is floating a €60 million ($78.5 million) fund, having scaled back its ambition from €100 million.
It is the first growth capital fund to pursue a listing in France.
The firm launched its book-building earlier this week and hopes to float on 4 December. Sodica Corporate Finance is sponsoring the listing, while Natexis Bleichroeder is sole bookrunner.
It plans to raise €30 million up front with a further €30 million in warrants to minimise cash drag on the fund. It will convert half the warrants in 12 months and the rest with in 24 months.
François Lombard, chief executive, said: “I want to test the water and get the market used to this type of fund. Then within the next four or five years to grow it to €200 million or €300 million.”
Lombard compares his fund’s small beginning with American Capital, which started with a $100 million fund. The US one-stop shop now manages funds worth $8 billion.
Turenne Capital has built a portfolio of several dozen equity investments with almost €200 million under management. The day after listing the fund will purchase two assets from Turenne’s exisiting portfolio: Webhelp, a business outsourcing company, and Aston Medical, an orthopaedic implant producer.
Lombard’s 12-member team focuses on five sectors: manufactured goods, specialist retail, services, medical devices and information technology. Its most famous investment was in Kelkoo, the online price comparison site.