Mentha holds first close on €51m

Ellie Pullen
20 February 2014

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Dutch private equity firm Mentha Capital has held a first close for its Mentha Capital Fund IV (MCF IV) vehicle on €51m, slightly more than halfway towards its target.

The firm anticipates that the fund's €100m target will be hit by the end of June this year. Terms and conditions for the fund were described by partner Edo Pfennings as "European standard".

The fund has a lifespan of 10 years, with a five-year investment period. MCF IV was launched around 11 months ago, Pfennings said, and has a hard-cap of €120m.

MCF IV's predecessor reached a first close in March 2011 and a final close in November of the same year. The fund was fully invested last year.

Alongside fundraising for its new vehicle, Mentha is anticipating a bout of divestments over the next 18 months from its previous fund.

Investors
So far, the fund has received around €30m in commitments from several family offices, largely based in the Netherlands, with a further €10m in the pipeline. The European Investment Fund (EIF) committed €20m to the fund.

Mentha is anticipating that a select group of institutional investors will subscribe to the vehicle. Pfennings stated that the firm is already in talks with some funds-of-funds and is expecting two or three to commit to MCF IV.

The fund also includes a GP contribution. The minimum subscription for LPs is €1m. Almost all existing investors in Mentha's previous funds have reinvested in MCF IV.

Investments
MCF IV is aiming to invest in 6-8 companies located in the Netherlands and the Flanders region, with an investment period of 3-5 years. The firm intends to continue its strategy of making one or two investments per year.

The fund will invest in the lower end of the mid-cap buyout market, typically providing equity investments of €5-15m in companies with enterprise values of €15-75m, revenues of €25-75m and EBITDA of €2-10m.

The firm predominantly supports management buyouts and buy-ins, according to its website.

The fund has already made two investments, one of which has been announced in conjunction with MCF IV's first close: in February, Mentha backed Alkmaar-based Etiket Nederland, a producer of self-adhesive labels.

In July last year, the vehicle acquired a majority stake in the management buyout of Customs Support, a Rotterdam-headquartered provider of customs services for logistics firms, manufacturers and trade companies.

People
Gijs Bottman is managing partner at Mentha, while Edo Pfennings is a partner.