Essling refocuses on co-invest and LBO, as co-founder departs

Mezzarobba left the firm in Q1, according to a source close to the situation, confirming information initially appearing in French publication Capital Finance. The split is understood to have been amicable.

The private equity team of French asset management firm Massena Partners span out and rebranded as Essling Capital in 2017, forming a new player that managed €1bn across a spectrum of private equity strategies at the time.

Mezzarobba set up Essling in 2017 alongside Massena founder Frank-Noël Vandenberghe. The latter initiated the project and initially held 80% of the firm, with Mezzarobba owning the remaining 20%. Vandenberghe has now bought out the 20% stake and is the sole owner of the business. In addition, he has now taken on the role of chair, overseeing the strategy, but leaving the operational oversight to the rest of the team, the source added.

Essling has also now abandoned its fund-of-funds strategy. Essling recruited the fund-of-funds team of limited partner Amundi Private Equity shortly after its launch in 2017, and went on to begin raising its first vehicle. Ultimately, the offering was not met with the required level of appetite, the source said. Click here for an in-depth look at Essling's initial fund-of-funds strategy

The fund-of-funds team – led by Jean-Yves Lagache and including other ex-Amundi professionals – departed the business in Q1 as well. Their future plans remain uncertain, though Unquote understands they are still looking at solutions preserving the unity of the team.

Eyes on the prize
Essling has now refocused on two core strategies: its initial mandate of co-investments, and its "lead investment" arm, which focuses on majority and minority buyouts. The firm is still in the midst of raising two funds for these strategies, but the Covid-19 crisis means that the timing of further closes has been pushed back.

Essling collected in excess of €90m for Essling Co-invest 3 at first close in November last year and was initially aiming for a final close on €120m in Q1 2020. The fundraise is nearly 90% collected, but a final close is now expected towards the end of Q2, the source said. The vehicle started deploying earlier this year, but will now pause given the current market condition, they added.

Meanwhile, Essling is also looking to raise €250m for Essling Expansion, dedicated to its buyout strategy. The firm held a €100m first close in February last year, with a final close originally targeted in Q3 2019. The revised timeline for a final close is not firmed up yet, though Unquote understands the fund has collected around 50% of its target.

Essling Expansion has already begun deployment and is now invested in four businesses. This includes French insurance broker SPVIE Assurances, which also completed a bolt-on shortly after the investment from Essling earlier this year. Other assets include Chabé Limousines, Evolucare Group and Ubitransport.

Essling will also not exclude looking at additional strategies in the future, which could include distressed debt/equity offerings, the source said.

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