DACH fundraising update: H2 2020 pipeline

Harriet Matthews
08 July 2020

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Although the coronavirus pandemic has set back plans for many GPs, a number of mid-market and small-cap buyout vehicles are on the road in the DACH region, along with several venture capital funds. Harriet Matthews reports

Upcoming closes

Mirabaud has delayed the first close for its second private equity fund, Mirabaud Lifestyle and Impact, from Q1 2020 until the end of Q2 or beginning of Q3. The fund was announced in January 2020 and is targeting €200m. The fund will focus on growth investments in B2C lifestyle companies and B2B companies serving the consumer sector, deploying equity tickets of €10-20m. The fund plans to invest in 20 businesses in total, 5-10 of which will be early-stage companies.

SwanCap Partners is set to hold a third and final close for its fourth fund-of-funds in the coming weeks, as reported. The GP launched Swancap Private Equity Co-Investment Opportunities Fund IV in June 2018. The fund held a first close in March 2019 on €97.17m, having experienced a delay of two to three months due to the coronavirus crisis. The fund is likely to close above its target of €250m. SwanCap also expects a subsequent delay to the launch of its next vehicle.

SwanCap has already begun investing from the vehicle, which is 30% deployed, and has closed 10 deals in 2019. The fund has a three-year investment period and the firm expects to see strong dealflow for its co-investment strategy. It will deploy equity cheques with a sweet spot of €10-20m.

Beyond Capital Partners' second fund is set to hold a final close in H2 2020. The vehicle is targeting €125m, a sizeable increase from the firm's first fund, which had a total volume of €25m. The firm plans to make two deals before the end of 2020, as reported.

In the pipeline

Patrimonium held a first close for its debut private equity fund on €100m in March 2020 and is understood to be proceeding with its fundraising timeline as planned, aiming for a final close within a year of its first close. The fund will deploy equity tickets of €15-30m, focusing on DACH-based lower-mid-market industrial products and services (B2B, B2C) companies with turnover of €20-150m and enterprise values of €10-120m. The vehicle is targeting a gross money multiple of 2.5x and a 20% IRR.

Funds that are also understood still to be on the road include Capiton VI, which was launched in July 2019 and is targeting €550m. The firm is ready to deploy equity from the vehicle to finance new investments following a first close in Q2 2020.

Golding Capital Buyout 2018 is also understood to still be on the road. The fund was announced in June 2018 and held a first close in December 2018. It is targeting €400m and plans to invest in 10-25 mid-market buyout funds, as well as co-investment opportunities and secondary funds.

EMH Partners held an interim close for its second growth fund on €550m in April 2020. The fund has a target of €650m and remains on the road. The fund will make growth investments in technology companies in the DACH region.

Heal Capital is currently on the road for its debut fund, which is targeting €100m. The vehicle will focus on healthcare and healthcare technology companies. The fund held a first close on €80m and expects to hold a final close by the end of 2020. The fund will initially invest €3-5m, investing up to €15m per company. The firm will hold back 50% of the fund's commitments for follow-on investments.

Deutsche Private Equity registered its fourth fund in January 2020 and the vehicle is now on the road. It will target €800m-1bn and will make 15-18 platform investments. DPE Deutschland III held a final close in January 2017 on €575m. The fund has eight portfolio companies and writes equity tickets of €20-60m.

Capiton, Patrimonium and Mirabaud declined to comment. DPE could not be reached for comment at the time of publication.