capiton closes fourth fund on EUR350m

Fund

capiton has completed the fundraising for capiton IV ahead of schedule; the EUR350m fund was heavily oversubscribed after the fundraising process began in March 2009 with the approach of selected investors. After a first close in mid-July 2009, fundraising ended on 30 September following the receipt of the remaining subscription documents.

While investors' subscription volume was met in full in the first closing, the second closing required an allocation process, as the maximum fund volume was limited to EUR350m. Terms and conditions are described as industry standard.

The fund is legally based in Germany, has a GmbH & Co KG structure and a 10-year lifespan. Legal advice was provided by Amos Veith of P+P Pollath + Partners, and no placement agent was used.

Investors

In total, a group of 30 investors participated in capiton IV, which had a minimum subscription of EUR5m. Of the funds invested, 33% were invested from Germany and Austria, a further 20% came from Switzerland, 23% from the UK, 12% from France, 7% from Scandinavia and 5% from the US and Japan.

By type, 37% of subscriptions came from funds-of-funds, 20% from insurers, 14% from pension funds, 14% from family offices, private persons and foundations, 9% from investment trusts, 3% from banks and 3% from the GP. Overall, the LP base has broadened, diversified by investor type and further internationalised, compared to the predecessor funds.

Investments

With the new fund, capiton will continue the investment strategy of its two previous funds, capiton II and capiton III, namely the acquisition of equity stakes in successful medium-sized companies in the DACH region that generate profitable revenues between EUR50-500m.

The fund will make three to four commitments per year, with a total of 10-12 transactions. There are deals in the pipeline, with capiton stating that their dealflow has not deteriorated compared to previous years. As the team sources many of its deals proprietarily, dealflow has not been affected as much by the dwindling supply from auctions.

People

In total, there are 10 partners at capiton and three further investment professionals.

Name: capiton IV

Closed on: EUR350m, November 2009

Focus: DACH, buyout, lower mid-market

Contact: Stefan Theis, Gerwin Theiler, Manuel Hertweck

Address: capiton AG

Bleibtreustrasse 33

D-10707 Berlin

Tel: +49 315 945 0

Fax: +49 315 945 57

Advisers: P+P Pollath + Partners (Legal).

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