Advent raises EUR6.6bn global buyout fund

01 May 2008

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Fund

Advent International has closed its sixth global buyout fund GPE VI on its hard cap of EUR6.6bn. Touted as the largest mid-market buyout fund ever raised, it is also the ninth-largest global buyout fund and the largest one that Advent has ever raised. GPE VI exceeded its original EUR5bn target by more than 30% and was oversubscribed, with LPs wanting to invest more than EUR10bn. The fund has a lifespan of 10+1+1 years and is based in the Cayman Islands. Terms and conditions are described as industry standard. Legal advice was provided by Goodwin Procter.

Investors

GPE VI attracted 160 investors, with two-thirds of the capital raised from returning investors. Geographically, 42% of the capital was raised from North American LPs, 41% from European LPs, 11% from Asia Pacific, and 6% from the Middle East.

The largest investors are Canada Pension Plan Investment Board, GIC Special Investments, AlpInvest Partners, Pantheon, California State Teachers' Retirement System, SL Capital Partners LLP (previously known as Standard Life Investments Private Equity Ltd.), Universities Superannuation Scheme and Partners Group.

Investments

The fund follows the strategy of its predecessor, GPE V, which was closed in 2005 on EUR2.5bn to invest in the mid-market and upper mid-market segments predominantly in Europe and North America. The fund will focus on companies with a value of between EUR200m-1bn. For Germany however, Advent sees transactions of up to EUR2bn as possible, albeit not in the current market conditions. The fund will invest in between 30-35 companies.

GPE VI will focus on three core strategies: international buyouts, strategic realignment opportunities, and growth-focused buyouts. The GPE team will concentrate on augmenting the profitability of portfolio companies through the strengthening of their operative businesses, their strategic realignment and expansion into domestic as well as international markets.

Target sectors are financial services, retail, consumer goods and leisure, health, technology, media and communications, and the manufacturing industry. The investor anticipates that it will invest around 60-70% in Europe, 25-35% in North America, and 10-15% in other regions.

People

GPE VI is managed by 69 investment professionals in Western Europe and North America. They are supported by around 50 Advent transaction specialists in Central and Eastern Europe, Latin America and Japan.

Name: GPE VI

Closed on: EUR6.6bn

Focus: Mid-market buyout

Contact

Advent International Corporation

Address

75 State Street

Boston, MA 02109

Tel: +1 617 951 9400

Fax: +1 617 951 0566

Advisers

Goodwin Procter (Legal).