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Amundi PEF nears first close for Megatendances II fund

Greg Gille
@unquotenews
05 February 2020

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The Amundi Private Equity Megatendances II platform, managed by French player Amundi Private Equity Funds (Amundi PEF), is set to hold a first close in the coming weeks, Unquote has learned.

The first close should be held on around half of the fund's €500m target, according to a source close to the situation. So far, the capital has mostly been collected from institutional investors and life insurance providers, the same source added – ultimately, Amundi is aiming for a €300m/€200m split between institutional investors and retail investors.

Megatendances II was launched at the end of last year, and is structured into several vehicles to attract both retail and institutional investors.

The vehicle will follow a strategy similar to its predecessor. It will take active minority stakes in growth capital and buyout transactions of private SMEs in France (at least 50% of deployment) and in the rest of the eurozone (maximum 50%). Target companies will generate revenues of €20m-1.5bn with EBITDA of more than €3m. The average investment ticket will be €10-50m per transaction.

The portfolio will aim to include between 15-25 companies in total. The businesses will have to demonstrate they benefit from the impact of five global trends identified by Amundi: technology, demographic change, environment, globalisation, and social changes.

The fund will target a gross IRR of 18% per transaction.

The fundraise is open to retail clients via a network of French banks and life insurance providers until December 2020. Unquote understands that Amundi PEF is looking at a similar timeframe to raise capital from institutional investors. Minimum commitments for retail clients start at €100.

The vehicle is being marketed across Europe, but is likely to have a strong French base, the source added. Around 80% of commitments in Megatendances I came from French investors.

The first Megatendances programme raised €320m in 2018, against a target of €250m. The first-generation programme will have been used in 18 transactions for an 85% deployment rate by the end of Q1, according to the source. Portfolio companies include DL Software, Crosscall and WiFirst. The average entry multiple for the fund's investments has been 8x, the source added.