Pan-European GP Alpha has announced the first close of its latest mid-cap buyout fund at around €500m.

Launched in early 2011, Alpha Private Equity Fund 6 (APEF 6) has a hard-cap of €750m. The GP is aiming to reach final close for its eighth buyout fund in October/November 2011.

APEF 6 has a 10-year lifetime with a potential three-year extension. The investment period is set at the usual five years, although Alpha expects APEF 6 to be fully invested within four years.

The fund will start charging management fees of 1% the first year, gradually increasing over the investment period to reach 2%. Carry and hurdle were set at 20% and 8% respectively.

No placement agent was used in the fundraising effort. SJ Berwin, Arendt & Medernach and Ropes & Gray are acting as legal advisers to the vehicle.

Investors
Existing investors contributed to 60% of APEF 6 – these include AlpInvest Partners BV, Akina Partners, Capital Dynamics, Danske Private Equity, Quilvest Group and Wilshire Private Markets.

New Alpha LPs include MN Services, SCM, Golding Capital Partners, Gruppo Intesa Sanpaolo, an endowment fund and several family offices and foundations.

For the time being, European investors account for almost 90% of the LP base. Alpha, however, expects to receive more commitments from international LPs by final close.

Investments
APEF 6 will take majority stakes, or significant stakes, mostly in leveraged buyout transactions in France, Italy, Belgium, the Netherlands, Switzerland, Germany and Austria. The enterprise value of its targets will range from €20-500m.

The fund has already made its first Italian investment with the Savio Group buyout. It aims to complete 12-15 transactions over its investment period.

People
The fund will be managed by Alpha's 29-strong Pan-European team.

Contact
Patricia Desquesnes, Investor Relations
ALPHA ASSOCIES Conseil
49 Avenue Hoche
F - 75008 PARIS
Tel: + 33 1 56 60 20 20
Fax: + 33 1 56 60 10 22