Ventizz Capital Partners has held the final close of its fourth mid-market buyout fund on €450 million ($651.2 million) after six months fundraising.
The close was above Ventizz’s initial €350 million target and 50 percent oversubscribed.
The fund will focus on companies in the German speaking economies with revenues of between €10 million and €100 million. The fund invests in high-tech businesses including semi-conductors, electronic manufacturing, renewables, information technology and medicine.
Helmut Vorndran, chief executive of the firm, said: “Our LPs included HarbourVest and several Ivy League universities. HarbourVest is backing us for the third time and has one of the largest stakes in the fund.”
In 2005, Ventizz closed its second fund on €60 million for investment in venture capital and its third fund in 2006 on €125 million.
Despite raising its first technology fund in 2000 as the dotcom bubble began to burst, the firm managed to steer this fund to a reasonable return. “This also had a very attractive multiple of 1.8 which places it as one of the top funds from this time, although fund two and three have been much more successful.” The firm has been able to grow its fund size on the back of its Ersol Solar Energy buyout, which was a substantial €40 million leveraged investment from the firm’s fourth fund in 2004.
Ventizz took Ersol public in 2005, retaining a majority stake. The firm now has a market capitalisation of around €500 million, although its share price has fallen, along with the global stock markets, by 26.6 percent in the last week to €46.7 per share at 1551 GMT today.
Vorndran said the second fund’s performance would be driven by this exit which will happen in the medium term.
The firm has made four investments from its third fund and is set to make its final fifth investment soon, Vorndran said.
Fifteen percent of the fund’s investors came from the German speaking region, 30 percent from Europe and 55 percent from outside Europe. Fund of funds made up 35 percent of the fund while university endowments contributed 21 percent. Other investors included pension funds, industrial companies, banks and insurance companies.
Credit Suisse acted as placement agent and financial advisor. Latham & Watkins acted as legal advisor to the fund.