21 Investimenti closes fund on EUR280m

Fund

21 Group has reached the final closing of its latest Italian private equity Fund, 21 Investimenti II, at EUR280m, above its initial EUR200m target. The fund, based in Italy, was launched in April 2007 and has a lifespan of 10+2 years. Minimum subscriptions were set at EUR5m with the GP contributing 1% of the total commitment. Management fees, carry and hurdle have been set at industry standards with the carried interest being paid on the fund as a whole. The fund has both a catch-up mechanism and claw-back clause. O'Melveny & Meyers and Legance have been retained as legal advisers to the fund.

Investors

More than 50% of commitments originate from non-Italian international institutions such as pension funds, banks, insurance companies, funds-of-funds and family offices.

Investments

21 Investimenti II has already completed two transactions: the LBO of GPP Industrie Grafiche SpA, a specialist in the luxury cardboard packaging sector and the MBO of Valbart, a spin-off from the multinational Group Velan, an Italian manufacturer and distributor of ball valves for the oil & gas and petrochemical industries. The vehicle will focus on buyout and capital growth transactions, taking advantage of recognisable opportunities in the Italian manufacturing sector. It will target mid-market companies based in Italy or which have their operations primarily based in Italy, investing EUR15-35 in equity per investment.

People

Founded in 1992 by Alessandro Benetton, 21 Investimenti has built over the years an experienced team of 14 professionals and has completed over 35 investments supporting the management in the development of their companies. The team, which is among the most experienced in the Italian private equity market, offers a valuable combination of experience and skills, together with the successful management of a long-term private equity partnership.

Name: 21 Investiment II

Closed: EUR280m September 2008

Focus: Buyout, mid market

Contact: Stefano Tanzi

Address: 21 Investimenti

90, Viale G. Felissent

31100 Treviso

Italy

Tel: +39 02 77 121 311

Advisers: O'Melveny & Meyers

Legance: Cape launches renewable dedicated fund

Fund

Cape-Natixis has launched a new EUR70m fund to be wholly dedicated to projects in the renewable energy sector. The fund, based in Italy, has a 10-year lifespan. The vehicle's floor and hard-cap are set at EUR40m and EUR100m respectively with the management fees, carry and hurdle at industry standards for the renewable energy sector. Carried interest will be paid on the fund as a whole but the vehicle has included a catch-up mechanism in its structure. Acanthus acted as placement agent on behalf of the fund.

Investors

Cape Helio is seeking commitments among institutional and private investors as well as family offices both in Italy and overseas.

Investments

The vehicle is to invest in up to 250MW of renewable energy projects in Italy with up to 200 MW in new solar energy development projects depending on the final amount raised. The fund can invest up to 20% of its commitments per project. Co-investment alongside other GPs or LPs is still under consideration in the fund structure. Cape Helio is currently securing authorisation for a 50MW power plant in Southern Italy.

People

The fund is managed by Cape Natixis, which raised a combined EUR395m from its last two funds, which were significantly oversubscribed. The firm was founded in 1999 by Simone Cimino, who is now chairman and CEO. Before founding Cape, Simone Cimino founded Advance, a financial consulting firm specialising in market analyses and due diligence to support buyout transactions. He later joined LBO Italia as a partner and managing director, where he advised Europe Capital Partners, a $260m fund, and Donaldson Lufkin & Jenrette Merchant Banking Partners II, a $3.2bn fund. He is also chairman of the Financidea Foundation, director of the European Venture Capital Association and director of the Italian Association of Financial Analysts.

Helio Partners is adviser to the fund. The chairman and managing partner of the firm is Massimo Sapienza, who previously worked as head of strategic planning at Electrabel, a major European power utility with over 31,000 MW of generating capacity. He also led teams for due diligence on 1,024 MW of renewable energy projects, 144 MW of which were acquired or developed. Outside of renewables, he also led the acquisition and development of combined cycle gas turbines with a capacity of 4,200 MW. Prior to this, Sapienza spent five years at McKinsey, where he focused on utilities, with a special emphasis on power generation and distribution. In this position, he was involved in the acquisition of EdiPower, a utility company with 6,800 MW of capacity.

Name: Cape Helio

Launched: September 2008

Target: EUR70m

Focus: Renewable

Contact: Simone Cimino

Address: Cape Natixis

9, Corso Matteotti

20121 Milan

Italy

Tel: +39 02 7639 0931

Fax: +39 02 77 33 1617

Demeter 2 fund reaches first close at EUR125m

Fund

Demeter Partners has held a first close of EUR200m fund Demeter 2 on EUR125m. The fund will seek to hold a final close before the end of 2008. The fund has a hard-cap of EUR250m. Demeter 2 takes over from its predecessor Demeter, which closed in October 2006 on EUR105m and is currently 75% invested. Legal advice for the fund is provided by Brunswick & Associes.

Investors

The fund has around 80% of the investors from the previous fund to return with more significant contributions. Geographically, between 70-80% of investors will be from France with the remainder from the rest of Europe. Investors in Demeter 2 include two sponsors (CDC Entreprises, IFP Investissement), new investors Total, Credit Cooperatif and Dahlia as well as returning investors from the first Demeter fund which include Robeco, Cardif, CIC and CNP.

Investments

Like Demeter Partners' previous fund, Demeter 2 will be used to make expansion investments with 20% of the capital reserved for early-stage investments and 20% for majority investments. Demeter will focus the fund on ecological industries including water, waste and recycling, and also ecological energy sources such as renewable energy, committing half the new fund to these areas.

The fund will allocate tickets of between EUR5-15m per transaction with a view to completing between 25-30 deals in total. Geographically, Demeter will deploy around 50% of the fund in France but there will also be an important focus on investments in Spain and Germany.

People

The fund will be managed by Sophie Paturle, Michel Ronc, Stephane Villecroze, Lionel Cormier and led by Olivier Dupont. Philippe Brunswick represented Brunswick & Associes.

Name: Demeter 2

First close: EUR125m October 2008

Focus: Expansion

Contact: Olivier Dupont

Address: Demeter Partners

23, rue de L'Arcade

75008

Paris

Tel: +33 1 43 12 53 33

Fax: + 33 1 43 12 53 30

Adviser: Brunswick & Associes (Legal)

Espirito Santo holds second close at EUR75.5m

Fund

Espirito Santo Capital has completed the second closing of Espirito Santo Infrastructure Fund - I (ESIF) on EUR75.5m as at June 2008. With this second round of fund raising, ESIF increases its dimension from EUR50.5m. The vehicle was launched in April 2007 with a target of EUR66m and a hard-cap of EUR100m. Minimum subscriptions were set at EUR5m with a leeway for flexibility in accepting smaller commitments. The BES Group has committed EUR20m (close to 26%) to the fund, with management fees set at approximately 1.6% and the hurdle at 6%. The fund expects to reach a final closing by the end of the year.

Investors

ESIF subscribers include Portuguese (40%) and international (60%) investors, whether European or foreign institutions through their European branches. Commitments come from institutional investors including banks, insurance companies, pension funds (88%) and family offices (12%). This private equity fund is targeting equity stakes in primary European infrastructure projects, mostly Iberian, focusing on transport, renewable energies and social infrastructures.

Investments

The fund will invest in general infrastructure projects in the transport, social and energy (renewable) infrastructure. ESIF has a European mandate but will predominantly focus on the Iberian Peninsula with 60% of the funds allocated to start-up projects and the remaining to capital expansion investments. The vehicle will take minority positions, investing between EUR5-10m per deal. The 20% restriction can we waived when acquiring portfolios in which case the fund can invest up to 30% of the capital committed.

People

ESIF is managed by Espirito Santo Capital, private equity company of Espirito Santo Investment Group and one of the oldest Portuguese private equity companies. The company develops its activity in the Iberian Peninsula, France, Brazil, and also in other European countries, through the investment in later stage and infrastructure deals. Espirito Santo Capital has an experienced management team of 20 professionals spread across its Lisbon, Madrid and Sao Paolo offices. The company has more than EUR200m under management, raised before relevant national and international investors.

Name: Espirito Santo Infrastructure Fund I

Second closing: EUR75.5m June 2008

Target: EUR66m

Focus: Iberia, infrastucture

Contact: Luis Valenca Pinto

Address: Espirito Santo Capital

Rua Alexandre Herculano 38, 1

1269 161 Lisbon

Portugal

Tel: +351 21 351 58 40

Fax: +35121 351 58 46

ARCIS closes fourth secondaries fund on EUR354m

Fund

ARCIS Group, a secondaries private equity group, has held a final close of their fourth fund, ESD Fund IV, on EUR354m. ARCIS' previous fund closed in 2004 on EUR175m. The fund was launched a year ago and closes ahead of its EUR350m target.

Investors

Geographically, around 50% of the investors in the fund came from the US with the remainder coming from Europe, Asia and the Middle East. The investors are comprised of insurance companies, pension funds, family offices, foundations and endowments as well as a sovereign wealth fund from the Middle East. Two thirds of the capital comes from investors in the previous funds which have returned and increased their allocations.

Investments

The fund will seek to invest in secondary transaction purchases of Western European Private Equity funds and in the portfolios of European PE-backed firms. The vehicle will carry out investments of EUR10-50m on average with the possibility of top end deals of around EUR200m in size. The fund has already used around 20% of its capital for investments in the UK, France, Germany and the Benelux region. Investments include the purchase of a portfolio of private equity interests held by a large European company and a couple of portfolio purchases of direct equity positions in companies.

People

Arnaud and Henri Isnard, Mark Burch and Romain Bouche lead a team which will manage the fund from ARCIS' Paris, London and New York offices.

Name: ESD Fund IV

Fourth close: EUR354m

Focus: Secondaries

Contact: Arnaud Isnard

Address: ARCIS Capital Ltd.

2 Savile Row

London W1S 3PA

United Kingdom

Tel: +44-20-7494 2110

Fax: +44-20-7494 2105

Advisers: Dewey & Leboeuf (legal)

Nextech closes EUR41m oncology-focused fund

Fund

Swiss firm Nextech Venture has held a fourth and final closing of its third fund on EUR41m. The fund completed a first closing on EUR25m in October 2006. The firm did not disclose the name of the fund, which has a lifespan of eight years plus two years extension and is based in Jersey. The minimum subscription was EUR1m, and the terms of conditions were described as "conservative with a high hurdle", owing to the difficult fund-raising environment. RKS advised on the legal side, and no placing agents were used.

Investors

Peter Diehl acts as a cornerstone investor; other investors include a private bank, wealth management firms and high-net-worth individuals mainly from Europe, with a regional emphasis on Germany and Switzerland.

Investments

The fund aims to operate in the cancer marketplace, which has seen an increasing demand for new cancer therapies. It invests in later stage companies in the pre-clinical stage of their product development, with a view to exit within two to four years by way of a trade sale. Nextech Venture's oncology-focused fund has made four investments to date, one of which is based in Switzerland, namely Telormedix SA. The fund has reported its second exit after US-based Agensys, with Germany-based Ganymed Pharmaceuticals AG, which was acquired by ATS. Both exits have led to the fund being significantly positive in terms of net IRR from its first year.

The fund will invest globally, with around 70% of the total capital expected to be deployed to the US, with the remainder going to Europe and Asia. The fund seeks to make two to three investments per year and will typically invest between $2m-10m per company, assuming lead and co-lead, as well as co-investor roles. The fund is currently in advanced talks regarding three more investments and has several more investments in the pipeline.

People

The firm is led by its founder and CEO Alfred Scheidegger. Myoung-Ok Kwon is a partner and Rudolf Gygax, formerly managing director of Novartis Venture Fund, recently joined the firm as venture partner.

Name: Nextech Venture Oncology Fund

Closed on: EUR41m October 2008

Focus: Venture, life sciences, global

Contact: Dr Alfred Scheidegger

Address: Nextech Venture Ltd,

Scheuchzerstrasse 35

8006 Zurich

Switzerland

Tel: +41 44 366 66 12

Fax: + 41 443 366 66 10

Advisers: RKS (Legal)

Charterhouse holds first close on EUR3.6bn

Fund

Charterhouse Capital Partners has held the first close of its ninth buyout fund on EUR3.6bn. Charterhouse Capital Partners IX was launched with a EUR6bn target and plans to hold additional closings over the next several months.

Investors

Massachusetts Pension Reserves Investment Management Board committed EUR80m, Washington State Investment Board provided EUR200m and San Francisco Employees' Retirement system approved allocations of EUR25m.

Investments

Charterhouse seeks investments in Western Europe, with a special focus on the UK and France.

People

Charterhouse is headed up by Gordon Bonnyman, who is supported by a team of 20 executives. The fund has an office in London and an office in Paris.

Name: Charterhouse Capital Partners IX LP

First close: EUR3.6bn October 2008

Focus: Western Europe

Contact: Gordon Bonnyman

Address: Charterhouse Capital Partners LLP

7th Floor

Warwick Court

Paternoster Square

London

EC4M 7DX

United Kingdom

Tel: +44 20 7334 5300

Fax: +44 20 7334 5333

Beechbrook stages first close of mezzanine fund

Fund

Beechbrook Capital has held the first close of Beechbrook Mezzanine I LP at $75m. The fund launched at the end of September 2008 and does not have a target. The manager is expecting a second closing in the first half of 2009.

The fund does not have a fixed lifespan but is expected to reach maturity after six or seven years. Beechbrook also made an undisclosed GP contribution but further terms and conditions of the fund have not been disclosed. SJ Berwin provided legal advice.

Investors

FRM Capital Advisers is the cornerstone investor, committing up to $75m from its FCA Catalyst Fund to the Beechbrook Mezzanine I. The fund is expecting institutional investors mainly from Europe to participate in the fund but is open to global investors as well.

Investments

Beechbrook is about to close its first investment from the fund and plans to make between 15 and 20 investments per year. It will target leveraged companies with an enterprise value of more than $200m in industries resilient to an economic downturn. Beechbrook is considering investments predominantly in Europe but with the ability to invest globally.

People

Paul Shea is the main manager of the fund for Beechbrook.

Name: Beechbrook Mezzanine I LP

Target: n/a

Closed on: $75m

Focus: Europe

Contact: Paul Shea

Address: Beechbrook Capital

20 Garrick St

London

WC2E 9BT

Tel: + 44 20 3178 2536

Advisers: SJ Berwin (Legal).

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