Capiton holds EUR 504m final close for sixth fund

Capiton VI was launched in 2019 with a EUR 550m target, according to Unquote Data.

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

Unquote sister publication Mergermarket reported in September 2021 that Capiton expected to close its sixth flagship fund in autumn 2021; Unquote had previously reported that the fund was expected to close in summer 2021 and that the GP was aiming to make four platform deals from the vehicle in 2021.

Consistency and discipline in strategy were important factors to the GP in the fundraise, managing partner Manuel Hertweck told Unquote: "Strategically, the mid-market is interesting – a lot of people have decided to move into the EUR 1bn-plus fund range, but we want to stay in our niche and to maintain our discipline. We are convinced of our industry focus, as our key sectors offer high growth potential and our team has strong expertise in these sectors. However, we are regularly reviewing opportunities in other sectors and are evaluating these options."

Capiton V held a final close in January 2015 on EUR 440m and made 12 platform deals.

In addition to its recent flagship fundraise, Capiton announced in July 2021 that it had raised a top-up single asset fund for omega-3 nutritional and pharmaceutical supplements producer KD Pharma, as reported. The GP has owned the company since 2013 and had invested via its 2009-vintage Capiton IV. Capiton first raised a continuation vehicle for the fund in 2019, as reported.

Investors
LPs in the fund include institutional investors such as the European Investment Fund, as well as funds-of-funds. The fund provides co-investment opportunities for its LPs. LPs in Capiton V include Amundi, LGT Capital Partners, HQ Capital, SwanCap Partners, AlpInvest and insurance group Allianz, according to Unquote Data.

Investments
Capiton VI will deploy equity tickets of EUR 20m-50m, focusing on primary buyouts of lower-mid-market companies with revenues of EUR 50m-100m. In addition to buyouts, minority deals could make up 20-25% of the fund's activity, Mergermarket reported previously.

The GP invests in four core sectors: pharmaceuticals, medical technology, industrial technology and responsible consumption. As reported by Mergermarket, these sectors are expected to make up 70% of the fund's activity, with investments beyond these sectors considered for the remaining 20-30% of the fund.

The vehicle made its first investment in July 2020, acquiring MIP Group (formerly CNP Group), and is now 36% deployed and EUR 260m committed across seven deals. The fund has two further deals in the pipeline in the areas of medtech and industrial automation; on completion of these, the vehicle will be around 50% deployed. Capiton VI is expected to make up to 15 platform deals in total.

People
Capiton – Manuel Hertweck (managing partner, board member).

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