Capiton heads for summer final close for sixth fund

Harriet Matthews
18 March 2021

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Berlin-headquartered GP Capiton is heading for a final close for Capiton VI over summer 2021, according to a source close to the situation.

Capiton declined to comment on the fundraise.

Poellath is providing legal advice for the fund, while Lazard is acting as placement agent.

Capiton VI has a €550m target. The fund is expected to follow the strategy of its predecessor, making mid-market primary deals for companies in the DACH region. The vehicle will also continue to follow Capiton's sector focus, which is composed of four core areas: medical technology, pharmaceuticals, industrial technology, and responsible consumption.

Like its predecessor, Capiton VI will deploy equity tickets of €20-50m and will allow co-investments with LPs. Capiton V made 12 platform investments, whereas Capiton VI expects to make around 15, given its increased size, the same source said.

The vehicle made its first platform investment in July 2020, acquiring generic medicines producer MIP Pharma (formerly known as CNP Group), followed by Swiss 3D sensor producer Cedes. Capiton announced the acquisition of a majority stake in wound care specialist Wundex in March 2021, as reported. The Wundex deal is expected to close in April 2021 and it will be Capiton VI's third platform investment.

A fourth platform deal for the fund is also likely to be signed in March 2021, the source said.

The fund intends to make four platform deals in total in 2021, the first of which was Wundex.

Unquote sister publication Mergermarket reported in January 2021 that Capiton IV portfolio company Engelmann is up for sale. Capiton acquired the smart-metering business in June 2014 alongside Nord Holding. Engelmann is the last portfolio company remaining in the 2010-vintage fund. The company generated €10m in EBITDA and posted revenues of €45m in 2020, according to Mergermarket.

Capiton completed a single-asset restructuring for Capiton IV portfolio company KD Pharma in June 2019, as reported by Unquote. The company has continued to perform well, the source said, and also has a strong add-on pipeline.

Capiton V held a final close in January 2015 on €440m. The vehicle has made two exits and a number of recaps, and the firm has also sold minority stakes in several of the fund's platform investments. In 2021, there will be additional recaps and an assessment of future exit opportunities from the fund, the source told Unquote.

In addition to its current fundraise, Capiton has made four junior investment team hires in the past 18 months. The firm also promoted two partners, Alexander Zamora and Fritjof Franz, in November 2020.