Advent closes EUR6.6bn global buyout fund

Times are good for mid-market buyout funds - just after both Capvis and Halder raised traditional mid-market buyout funds of EUR325m and EUR600m respectively, it was announced that Bain Capital closed a EUR3.5bn European buyout fund surpassing its EUR2.5bn target.

However, this is easily dwarfed by Advent International's announcement of the first and final close of GPE VI. This EUR6.6bn global fund is the largest mid-market buyout fund ever raised, ranks as the ninth largest buyout fund globally and the largest one Advent has raised to-date.

Jan Janshen of Advent comments: "The fundraising was successful because investors were attracted by our business model of focusing on improving the operative business and market position of portfolio companies on site, rather than relying on financial engineering. This helps us to deliver strong returns regardless of investment cycle."

Of the capital raised, 60-70% will be invested in Europe. Interestingly, Advent will consider occasional larger transactions of up to EUR2bn in Germany - however, not in the current market conditions. The strong performance of the German market is further supported by the upcoming European Fundraising Review 2008, which reveals that 2007 was a very strong year for DACH fundraising. Capital raised in 2007 saw a 60% jump compared to 2006, representing the third consecutive year of increased growth and the second highest total ever reached (see graph below).

Traditionally, Germany is strongly represented in Advent's portfolio, with two successful exits realised recently, when Advent sold SAG GmbH to EQT (February 2008, page 40-41) and Casa Reha to HgCapital (February 2008, page 41-42).

"Seen from an international perspective, Continental Europe is a growth market. Of course, competition is also growing stronger, but our strategy of value creation has proven successful and we are optimistic for the future", adds Janshen.

The new fund targets the mid-market and upper mid-market, and the strategy follows GPE V, which was closed in 2005 on EUR2.5bn. GPE VI will invest predominantly in companies with a value of between EUR200m-1bn.

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

• Topics
• Industry
• DACH