KKA Partners back on road for Fund II

Emma-Victoria Farr (Mergermarket)
01 November 2019

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KKA Partners, a German private equity firm launched last year, is back on the road to raise its second vehicle.

KKA Fund II is expected to hold a first close in H1 2020, according to founding partner Dominic Faber. It is targeting €200m, with a hard-cap of €250m.

KKA's €43m maiden fund, known as KKA Seed Fund or KKA I, is raised and deployed, Faber said. Its LP base consists mainly of UK and Scandinavia-based fund investors that have a view to becoming anchor investors in KKA's second fund.

Fund II is likely to take a normal structure, however; KKA will follow the advice of its anchor investors and is not limited to small and medium-sized enterprises, being open to alternative investment strategies including infrastructure and real estate, Faber said.

The firm was founded by Faber and fellow partner Kaspar Hartmann in 2018, and is based in Berlin, with six employees. Its sole investment so far is Evago, a Germany-based provider of rental services to the live infrastructure industry, which KKA intends use as a build-up platform. Its maiden fund will remain dedicated to the Evago live events platform, while Fund II will focus on other buy-and-build projects.

Click here for a more in-depth overview of KKA's strategy and current investment plans by Unquote sister publication Mergermarket

Investors
KKA will target all types of investors for its second fund, apart from retail investors. There are likely to be institutional investors from Germany, Switzerland and Scandinavian countries with a mandate for the DACH region. Family offices and endowment funds would also be welcome investors, Faber said.

Investments
KKA Fund II will focus on small and mid-cap enterprises. Around 80% of this fund will concentrate on companies in the DACH region, with the rest looking at core European countries including the UK, Scandinavia, the Netherlands and Spain.

It will look to make up to three transactions before first closing in Q1 2020, so investors can see the benefit of immediate deployment, Faber said. These transactions could become platform investments or build-up deals.

People
KKA Partners – Dominic Faber (founding partner); Kaspar Hartmann (founding partner).