Large funds flourish despite downturn

The last couple of weeks have seen a number of big players announce successful fund closures despite concerns about LPs being able to fulfil their commitments amid continued economic insecurity.

Bridgepoint, for instance, closed Bridgepoint Europe IV (BEIV) in excess of EUR4.8bn, well over its EUR4bn target, which was reached in March 2008. The fund attracted interest from almost 130 institutional investors, of which 54% were from North America, 33% from Europe and 13% from the rest of the world. The fund had a high number of returning investors, who increased their commitments by an average of 55%. BEIV will invest in companies with enterprise values of between EUR200m-1bn in buyouts, buy-ins and take privates and can make equity investments of up to EUR350m on a single transaction.

This follows the EUR3.6bn first close of Charterhouse Capital Partners IX, which has a target of EUR6bn (page 5), as well as the final close of The Carlyle Group's Carlyle Europe Technology Partners II (CETP II) on EUR530m (page 5). CETP II will invest between EUR20m and EUR60m in small- and mid-cap buyouts and expansion capital in technology companies. All three funds doubtlessly aim to fulfil the hope that investments done in the downswing might deliver superior returns, something industry professionals are pointing out to investors.

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