ECM approaches first close for GEP V

ECM has set a hard-cap of €325m for the vehicle, excluding its own commitment of €6.5m, according to publicly available documents.

The GP is conducting two very limited marketing trips to the US and has already attracted a €35m commitment from Rhode Island State Investment Commission.

Its predecessor, GEP IV, held a final close on €230m in June 2012 and is currently reporting a gross IRR of 33% and a net IRR of 17%, corresponding to money multiples of 2.0x gross and 1.5x net.

ECM focuses on DACH-based businesses with enterprise values between €20-80m, and acquires majority and control minority positions for equity investments between €10-40m. Its main source of deals is corporate carve-outs and succession situations, and generally sources using M&A boutiques and local advisers for limited auction processes.

The firm has made 24 platform investments across four funds to date, and fully realised 19 of these for a gross multiple of 3.3x.

The new vehicle will be registered in Germany and therefore will charge 19% VAT (payable to the German state) on its management fee of 2%.

It will be managed by senior executives Chris Peisch, Axel Eichmeyer, Florian Kähler and Bernard De Backer.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Funds
• Buyout
• DACH
• ECM Equity Capital Management