Parcom holds €775m final close for sixth flagship fund

Eliza Punshi
28 April 2020

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Parcom Capital Management has held a final close for its sixth fund Parcom Fund VI on its a hard-cap of €775m.

The Dutch mid-market private equity firm closed the fund after six months of active marketing.

The GP's latest buyout fund is larger than its predecessor, Parcom Fund V, which closed in 2016 on its €550m hard-cap; the vehicle made roughly 15 investments in the Dutch mid-market and is now fully deployed.

Parcom Fund VI was launched in June 2019 and held a first close in December 2019. The GP told Unquote that the first close was held due to technical reasons and not to start investing.

According to the GP, Fund VI was heavily oversubscribed, receiving "strong" support from Parcom's existing investor base.

Gert-Jan Evers, CFO at Parcom, told Unquote that more than 85% of the LPs were existing investors that rolled over to the new fund, and also included some "high-profile" new investors.

Evercore Private Funds Group acted as Parcom's global placement agent for the fundraise, while Loyens & Loeff was the legal and tax counsel.

Evers said that fundraising for the vehicle went "very smoothly", and that Covid-19 "didn't affect the fund at all".

The fund will have a 10-year lifespan and a five-year investment period. The GP committed €15m.

The GP's recent investments have been in Euramax Coated Products in February 2020 and Nedac Sorbo Mascot in February 2019.

Investors
The LP base for Parcom Fund VI comprises investors from across Europe and North America. It includes the GP's existing investor base, as well as new commitments from domestic and international pension funds, consultants, family offices, asset managers and banks. The GP added that about three fourths of the investor base is composed of institutional investors.

Investments
The fund has not made any investments as yet, and is expected to begin investing in June 2020. The GP has no deals lined up yet and does not expect to make any investments soon.

Parcom Fund VI, like its predecessor, is a generalist fund that will deploy €30-70m equity tickets in mid-market companies in the Netherlands.