Pinova hits €180m final close for second vintage

The fund launched in Q3 2016 with the same €150m target as its predecessor. While the GP's maiden vehicle, Pinova Capital Fund 1, launched in October 2007 and was on the market for three years in the aftermath of the financial crisis, the second vehicle hit its €180m hard-cap within six months.

Currently, Pinova 2 has two companies in its portfolio, the Austrian chemicals manufacturer Deurowood, and Weetech, a German Cable and functional test systems producer, both acquired in December 2016. The fund follows industry standards with regards to management fees, carried interest and hurdle.

It is understood the GP will focus on deploying the committed capital for the next three years and expects to launch its third vehicle in 2019.

Evercore Private Funds Group acted as sole placement agent for the GP's fundraising.

The GP held a final close for Pinova 1 on €117m in 2010 and the fund is currently fully invested, holding 11 portfolio companies. According to a source familiar with the situation, the GP raised capital mainly from German LPs due to the economic turmoil between 2008-2010.

Investors
Pinova raised commitments form several LPs, including asset management firms, banks, pension funds, endowments, funds-of-funds, family offices and high-net-worth individuals. The GP's management team also invested capital to the fund.

According to the source, 65% of the LPs committing capital to the new fund have already invested in the GP's previous vintage and are mainly based in Germany, while the remaining capital has been raised from international investors based in Europe and North America.

Investments
The fund will follow the investment strategy of its predecessor and invest in technology-driven SMEs operating across the software, internet, chemicals, materials, high-tech components and equipment sectors. The GP targets both majority and minority acquisitions via equity tickets ranging between €5-25m in companies headquartered in the DACH region and generating revenues within the €10-75m bracket.

The GP reserves 10-15% for follow-on transactions. In case of majority investments, the GP will use up to 50% leverage to support the transactions. Moreover, the fund manager expect to close two-or-three deals per year until 2019, according to the source.

People
Pinova Capital – Joern Pelzer, Martin Olbort (co-founders, partners); Herbert Seggewiss, Nina Hirsch (partners).
Evercore Private Funds Group – Richard Anthony (CEO).

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