Ventizz Capital Fund IV closes on EUR450m

Fund

Ventizz Capital Partners has closed Ventizz Capital Fund IV LP with EUR450m of total commitments, making the fund one of the largest private equity vehicles for the DACH region. Raised in approximately six months, it closed above its initial EUR350m target and was more than 50% over-subscribed at its final closing. The fund has a lifespan of 10 years and is based in Jersey. Terms and conditions were described as industry standard. Minimum subscriptions were set at EUR10m, with the GP contribution well above industry standard.

Investment advisers are Ventizz Private Equity AG in St Gallen and Ventizz Capital Partners Advisory AG in Dusseldorf. Credit Suisse acted as placement agent and financial adviser. Latham & Watkins acted as legal adviser to the fund; Ogier advised on Jersey law matters.

Investors

The fund was backed by a blue-chip list of more than 30 investors from across the globe, with support within the German-speaking region (15%), the rest of Europe (30%), and internationally (55%). In terms of investor type, 35% of the fund was backed by fund-of-funds, 21% by university endowments and foundations, 14% by pension funds, 13% by industrial companies and 12% by banks and insurance companies. LPs that could be named were Boston- and London-based HabourVest and Partners Group from Zug/Switzerland. Several LPs contributed via multiple investment vehicles. Ventizz Capital Fund IV represents a significant step up in size from Ventizz' previous Fund III and, as such, new investors constituted a significant portion of the commitments. However, of those LPs that could contribute again to this fund, 100% reupped.

Investments

The fund seeks to continue its predecessors' strategy of executing primarily control growth buyout investments of small- to medium high-growth high value added industrial businesses, with headquarters or substantial operations principally in German-speaking Europe. Typical target companies' business models (e.g. product, technology, process) will feature a key characteristic that provides it with a fundamental advantage over its competitors, to ensure that accelerated expansion is profitable and sustainable.

The fund focuses on established companies, typically with revenues of between EUR10m and EUR100m, at a key inflection point in their growth path, where Ventizz can leverage its competencies to support management and unlock future value. The fund seeks to invest net equity of between EUR10m and EUR70m. It will use moderate leverage, of around three to four times EBITDA. The fund seeks to invest around EUR100m per year. Many of the LPs are keen to join as co-investors and a co-investment strategy enables the fund to close transactions of up to EUR250m or at even higher valuation levels.

The first deal was already closed in the DACH region. In January 2008, the fund acquired in a control buyout transaction ZETT Optics GmbH, a LED lamp manufacturer for medical applications from Braunschweig in Lower Saxonia.

People

Ventizz is being led by Dr Helmut Vorndran, Reinhard Lochner and Willi Mannheims, who contribute an average of 18 years' experience as owners, managers, management consultants and investors. They are being supported by a team of six other investment professionals.

Name

Ventizz Capital Fund IV L.P.

Closed on

EUR450m

Focus

D, A, CH, buyout

Contact

Dr Helmut Vorndran, +49-211-862 869-0; h.vorndran@ventizz.com

Address

Ventizz Capital Partners Advisory AG,

Graf-Adolf-Strasse 18

D-40212 Dusseldorf, Germany

Advisers

Credit Suisse (placement agent & financial adviser)

Latham & Watkins (Legal)

Ogier (Legal - Jersey).

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• Topics
• Venture
• DACH