Lead Equities II holds a first close on EUR47m

01 February 2008

Tweet
Facebook
LinkedIn
Google plus
Send to

Fund

Lead Equities has held a first closing of Lead Equities II at EUR47m. The fund was launched in July 2007, with a target of EUR50m, a hard cap of EUR60m and a lifespan of 10 years with two extensions of one year each. The minimum subscription is EUR1m, with GP contribution of 1%. Management fees are 2.5% with a ratchet after the investment period. The carry is 20%, with the hurdle at 8% p.a; carried interest is paid for the fund as a whole and includes catch-up mechanisms and a clawback provision. New fundraising can be done after a minimum investment quota is met. The fund has a recycling clause that allows parts of the proceeds to be reinvested.

The fund uses no placement agents. Legal advice is provided by P+P Pollath & Partners, represented by Andreas Rodin and Herbst Vavrovsky Kinksy, represented by Wolfgang Schwackhofer. Tax advice was provided by Leitner + Leitner represented by Andreas Sauer and Gerd Konezny.

Investors

The fund's investor base is described as comprising leading Austrian institutional investors, such as banks, insurance companies, pension funds, as well as family offices. There is no cornerstone investor.

Investments

The fund aims to invest 75% of its capital in Austria, with the remainder to be invested in the surrounding German-speaking region, such as southern Germany, the German-speaking Swiss region and South Tyrol. The fund will target later stage companies for buy-outs and buy-ins and will invest in situations such as carve-outs, spin-offs, succession plans and buy-and-build strategies. Investments will be focused on traditional old economy companies in the industrial and service sectors. The investors seek to invest between EUR1.5-10m by acquiring minority as well as majority stakes, and may co-invest with others. Two to three investments will be done per year, and the exit strategy will typically be a trade sale or secondary.

People

Norbert Doll, Daniel Jennewein and Matthias Mihurko are partners in the management company and are supported by a team of four professionals. The Lead Equities team has successfully invested Lead Equities I (vintage year 2003, EUR49m), which - among others - holds stakes in Palmers, Remus & Sebring and Time Partner. In 2006 Lead Equities I has (partially) exited three investments returning 2.4x paid in capital. Recently, Lead Equities I signed an agreement to sell its stake in Eisen Wagner, a leading Austrian steel wholesale business, to ArcelorMittal.

Name

Lead Equities II

Target

EUR50m

Closed on

EUR47m

Focus

Austria, Germany, Switzerland, later-stage, industrial & service sectors

Contact

Lead Equities

Brucknerstrasse 4

1040 Vienna