Integra Partners gears up for EUR 200m-300m global fund

Anastasia Gnezditskaia
04 March 2022

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Belgian private equity investor Integra Partners is on the road for its second fund aiming to raise EUR 200m-EUR 300m early next year, partner and co-founder Bernard Hendrikx told Unquote.

Integra Global Fund, which will invest in private equity funds and co-investment deals, is expected to hold its first close on EUR 120m by the end of Q1 2022, he said. Commitments for this close have already been secured and will mainly come from four cornerstone investors, each of which will invest EUR 25m. Smaller retail investors, who are contributing with tickets starting from EUR 500,000, will provide the remaining amount.

The fund aims for a net IRR of 15% and 2x money multiple for its exits, Hendrikx said.

Two-thirds of the capital will be invested in international PE funds and one-third in international co-investment deals, he said. Differently from its predecessor, the new fund will not make direct investments.

For both, fund investments and co-investments, the sponsor will provide tickets of between EUR 5m and EUR 10m. For fund investments, it will target tier-one global funds in Europe, North America and Asia. For co-investments, the vehicle would make minority stakes deals and have a sector-agnostic approach.

Fund I
Integra Fund, the GP's first investment vehicle, was set up in 2018 and raised EUR 157m from retail investors in Belgium, including around 150 parties, each contributing approximately EUR 1m, Hendrikx said. Some of these were small institutional investors and entrepreneurs, in most cases with capital available to invest from the sale of their business, he said.

About one-third of the fund's deployed capital was invested in tier-one global PE funds, another third in co-investment deals with these funds, and the other third in direct investments in Belgian businesses. The vehicle has around EUR 50m dry powder, which it plans to deploy in direct investment in three to four Belgian companies by 2026, Hendrikx said.

Fund I's direct investment portfolio includes four companies: do-it-yourself construction business Sack Zelfbouw, container service provider Vindevogel, waste management solutions company Maes Recycling Group, and consumer offers platform Outspot. Integra supports a buy-and-build strategy for all four portfolio companies and has M&A deals planned for the coming year, he said.

The firm plans to exit all of these investments in the next three to five years, Hendrikx said, adding that no exit is planned for 2022.

In terms of fund investments, Fund I has been deployed across vehicles managed by France-based L Catterton Europe, UK-based MML Capital Partners, Stirling Square, Apax Partners, Australia-based Pacific Equity Partners and Blackstone Asia.