Ufenau on track for Q1 2022 fundraise

Harriet Matthews
14 October 2021

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Switzerland-headquartered Ufenau Capital Partners expects to launch the fundraise for Ufenau VII German Asset Light in Q1 2022, managing partner Ralf Flore has told Unquote.

The GP expects to both launch and close the fund in Q1, Flore said. The fund has a EUR 800m target, as previously reported.

"People had to think twice on how and where to invest during Covid," said Flore of the current fundraising landscape. "But demand is huge for the next fund; we could reach our target just with our existing investors in terms of size. We were in touch with many potential investors and have considered taking new ones on a selective basis. We raised our last two funds on a 'by invitation only' basis."

The GP's predecessor fund, Ufenau VI German Asset Light, held a final close in March 2019 on EUR 560m, surpassing its EUR 300m target. The fund targets services-focused SMEs with revenues of EUR 10m-150m, and makes equity investments of EUR 5m-20m. The GP regularly pursues buy-and-build strategies, reserving capital in its funds to support add-on opportunities for market consolidation.

Ufenau has made two platform deals in 2021. "We are pleased with our development in terms of platforms and our pipeline, as well as add-ons," Flore said. "By the end of 2021, we will have made three or four platform deals, as we would do in a usual year, as well as 30-40 add-ons. Activity is back to pre-Covid levels, if not more intense, given that we have more visibility now on earnings and how business models function in crises and through cycles."

In addition to its platform activity, Ufenau has completed one exit to date in 2021. The GP sold Swiss IT Security in an SBO to Triton in July 2021, netting 12x money on the sale of the IT and cybersecurity consultancy, as reported.

Asked about the GP's exit pipeline, Flore told Unquote: "We haven't planned any right now, but could take the opportunity if we are approached. We will start looking after the financial statements for the end of this year, then we might exit two to three companies next year. But it depends on how deals are concentrated in Q1 and Q2."

Although the GP has historically focused on the DACH region, Ufenau opened an office in Madird over the summer with four investment professionals; Ufenau had considered the expansion for around five years, Flore told Unquote, and the GP has now made two deals in Spain. Ufenau acquired industrial refrigeration business R&M in January 2021, followed by industrial and sanitation hygiene specialist Alfus Iris in August.

In addition to its expansion to Spain, Ufenau has grown its team since the time of its last fundraise. "We have almost tripled the team size since the last fundraising in 2019 and have been significantly investing in HR," Flore told Unquote.