WHEB Ventures hits third closing on EUR105m

01 September 2009

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Fund

WHEB Ventures has reached a third close for its clean technology venture fund WHEB Ventures Private Equity 2 LP, at £90m (EUR105m). The fund was launched in December 2008 and has a target for the final closing of £150m (EUR175m) by the end of this year. The British LLP's lifespan is 10+1+1 years and was advised by SJ Berwin. So far, the firm has raised the funds itself, but it is currently in talks with several placement agents to raise the rest.

The minimum subscription is £2m, with a GP co-investment obligation of 1% but, in addition, another £13m has been committed by various members of the GP. Management fees are at 2.5% and will be reduced to 2% when the fund reaches a size of £125m. Carry and hurdle are 20% and 6%, respectively.

Investors

The fund has attracted support from well-known European industrial family offices mainly from the UK and Central Europe, and financial institutions. Recently, the ERP-EIF fund-of-funds and the LfA-EIF fund-of-funds invested a combined £21m (EUR25m). There has also been a resurgent interest from US investors of late, with two endowment funds and three funds-of-funds currently in the data room. Almost all of the investors in the first fund have subscribed to the new fund.

Investments

The fund invests in later early-stage cleantech and renewable technology firms. The investor sees vast opportunities to invest in the burst cleantech bubble as valuations are the lowest for 10 years. The fund expects to invest about 1/3 in profitable firms and about 2/3 in firms that are generating revenue but not yet profitable. Co-investments will be prioritised and WHEB aims to commit EUR5-7m in a single company over the life of the investment. Targets are sourced via the network, and the scope includes all of Europe, including Israel. The fund will make three to four investments per year.

Existing WHEB Fund 2 investments include AMCS in Limerick, Ireland which provides its integrated technology solution to waste haulers. The company was profitable at the time WHEB invested. There are also two investments in Germany in the pipeline.

People

WHEB has five partners in offices in London and Munich and has recently increased its headcount in Germany to four, hiring one full-time associate and working with two part-time venture partners.

Name: WHEB Ventures Private Equity 2 LP

Target: £150m/EUR175m

Third close: £90/EUR105m

July 2009

Focus: Venture, growth, cleantech, Europe

Contact: Joerg Sperling

Address: For UK: 34 Queen Anne Street, London W1 8HE

Tel: +44 20 7299 4141

For Germany: Lenbach-Palais, Lenbachplatz 3, 80333 Munich, Germany

Tel: +49 552793410

Advisers: SJ Berwin (Legal).