Mentha holds €70m interim close for MCF IV

The fund has a target of €100m, which, at the time of the first close, Mentha had anticipated reaching by June this year. The firm now expects to hold a final close for the fund in October, partner Edo Pfennings said.

MCF IV has a hard-cap of €120m and a lifespan of 10 years, with a five-year investment period. It was launched at the beginning of 2013.

Terms and conditions were described by Pfennings as "European standard".

Investors
MCF IV has received around €30m in commitments from several family offices, largely based in the Netherlands, and €20m from the European Investment Fund (EIF). A further €10m from family offices was already in the pipeline at the time of the first close.

The fund's investors mainly comprise family offices and high-net-worth individuals. At MCF IV's first close, Mentha was anticipating that a select group of institutional investors would subscribe to the vehicle. Pfennings stated at the time that the firm was already in talks with some funds-of-funds and expected two or three to commit to MCF IV.

The fund's final close has been pushed back due to some funds-of-funds needing more time to complete due diligence, Pfennings said.

MCF IV 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.

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.

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