Steadfast to hold first close for fourth fund

The new vehicle has a target of €250m and a hard-cap of €300m, and the raise is understood to have picked up pace since the announcement of Steadfast's exit from AVS Verkehrssicherung in November.

Partly as a result of this exit, Steadfast Capital Fund III is now looking at a gross realised IRR of 17%.

The raise is said to have attracted capital from a mixture of different types of investors, although a majority of LPs in the fund are from outside Germany.

The fund has market-standard terms, a 10-year life and five-year investment period, with a 2% management fee and 20% carry above an 8% hurdle.

It is a significant increase on Fund III, which also targeted €250m but ended up using a stapled secondary to hold a final close on €128m in June 2013.

The strategy will remain unchanged, investing in profitable businesses in the DACH and Benelux regions with enterprise values of between €20-150m. Its focus will be on companies it can expand through buy-and-build strategies using modest leverage of 3-4x EBITDA.

The vehicle is registered in Luxembourg. Legal advice was provided by Dechert, and Northern Lights is acting as placement agent for the raise.

Steadfast declined to comment on the situation.

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• Topics
• Funds
• Buyout
• DACH
• Germany
• Steadfast Capital GmbH