Capiton moves two assets to continuation vehicle; Fund V largely unrealised

Rachel Lewis
01 February 2023

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German sponsor Capiton has raised a EUR 248m continuation vehicle for two of its Fund V assets, Raith and AEMtec, as a large portion of the 2014 vintage remains unrealised.

Capiton Quantum, the new vehicle, will provide the two industrial tech businesses additional capital to accelerate organic and inorganic growth, the sponsor said in a statement.

Its lead LPs are Eurazeo and Unigestion, alongside other blue-chip secondary investors, with other new and existing Capiton LPs.

The sponsor said that the deal underlined its "strong conviction" for a "resilient" German mid-market despite times of significant market volatility.

Capiton V's LPs were offered full optionality to generate liquidity or reinvest in the new vehicle, said Managing Partner Christoph Karbenk in a statement, adding that the transaction generated strong returns.

The GP acquired Raith, a German manufacturer of nanofabrication systems, in November 2016, and AEMtec, a provider of engineering and electronic manufacturing services in the same country, in 2018 for EUR 86m.

Both assets were originally acquired via Capiton V, a 2014 vintage vehicle that closed in December of that year on EUR 425m. Prior to the new vehicle launching, just two of the fund's 12 platform investments had been realised, according to Unquote Data.

The fund's exits comprised lens technology company Trioptics to trade, and laser systems provider LAP Laser to IK Partners.

One of its longest-held assets in Fund V is Gemaco, a Belgian provider of promotional marketing, acquired in January 2017. Others are German wine turbine maintenance group BWTS, acquired in October 2017, and Swiss cyber-security company CymbiQ (formerly known as Ispin), which it bought in March 2018.

The sponsor closed its latest fund, Capiton VI, in November 2021 on EUR 504m, a few months after its expected summer close.

People
Capiton — Christoph Karbenk (managing partner).
Raith — Ralf Jede (CEO).
AEMtec — Jan Trommershausen (CEO).

Advisors
Capiton — UBS Private Funds Group (placement agent); Stephenson Harwood (legal); POELLATH (legal); BMH Bräutigam (legal); EY (tax & structuring); Houlihan Lokey (debt advisory); Deloitte (legal & financial due diligence); Roland Berger (commercial due diligence); Kroll (fairness opinion).
LPs — Hogan Lovells (legal).