• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deals search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Unquote
  • Buyout

Qualium bets on high dry powder level to sustain exit valuations

  • Min Ho
  • 14 October 2022
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

French sponsor Qualium Investissement is optimistic that the USD 1.8tn dry powder gathered by private equity funds will continue to support its strong exit returns despite the increasingly global gloomy economic forecast, said managing partner Jean Eichenlaub.

The mid-cap investor, which typically grooms its French portfolio companies for buyers such as Montagu, Permira, Platinum and other upper-mid market Anglo-Saxon peers, is not highly dependent on capital market moves, notably the IPO market for its exits, he said.

“A majority of [our buyers are] typically larger PE firm looking for a well-managed market leading mid-sized firm with further international growth perspective,” he said. “Our view is that there is a lot of capital available at the upper end of the market, for strong businesses operating in healthy markets with solid organizations, including on ESG matters which become even more critical as you grow.”

The comments come as the GP approaches the EUR 500m fundraising target for Qualium III – a goal it had communicated earlier this year. Closing is expected well before year-end, with the fund having so far secured EUR 425m in commitments, according to a source.

Eichenlaub declined to comment on the fundraising progress, apart from noting that LP support is strong, allowing the GP to start investing as early as last November.

Its third flagship fund has so far backed four companies this year against an objective of building a portfolio of 10 companies, he said.

While valuations are down in certain segments and sectors, companies that interest Qualium have typically fared better, he said.

The GP has a sector-agnostic approach to investments with a belief in “remaining agile and sufficiently opportunistic”. Its main experience is in sectors including food, healthcare, digital & IT platforms and industrial services, he said.

Macro uncertainties
“Ukraine, inflation, supply chain or recession threats are serious issues we all have in mind,” he said. “We are typically very mindful of energy and other manpower cost increases when reviewing deals.”

For manufacturing companies, the cost of electricity and gas will impact margins, and it will take several months to increase prices to end customers, but B2B or digital platforms have more flexibility to deal with the current issues, he said.

The environment is also affecting the fundraising mood, with the managing partner “conscious” that fundraising can be a challenge especially when seeking new LPs, he said.

But Qualium has benefited from LPs increasing their commitments in its latest fund, just as LPs face re-up constraints alongside a desire to concentrate GP relationships, he said.

Qualium typically buys EUR 10m-15m EBITDA business with the aim of doubling or sometime tripling their size to attain a critical size for larger international funds, he said.

Among its latest transactions are the exit of French industrial electric heating group Vulcanic to UK’s Spirax-Sarco Engineering in a deal valued at EUR 261.7m, as well as the investment of Verdot Industrie, a purification equipment manufacturer for the biopharma industry.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • Buyout
  • Fundraising
  • Consumer
  • Industrials
  • Support services
  • Technology
  • Healthcare
  • Qualium Investissement
  • France
  • Fundraising Pipeline
  • Mid-market buyout

More on Buyout

Zurich in Switzerland
​​​​​Capvis grapples with EUR 1bn fundraise amid team exodus

Five partners for the Swiss-based GP leave firm in last two years; sponsor started sixth buyout fundraise in early 2023

  • People
  • 11 August 2023
UK fund closes and launches
WestBridge raises GBP 130m in first close for third fund with debut deal in sight

UK-based PE firm has set GBP 200m hard-cap and target for the vehicle

  • Funds
  • 08 August 2023
Insurance funds
Bain Capital intensifies strategy specialisation efforts with USD 1.15bn insurance fund

New fund will deploy tickets of up to USD 200m but is 'not afraid to start small', Matt Popoli said

  • Financials
  • 02 August 2023
Paris's Arc de Triomphe
Eurazeo co-CEOs seek to reassure market following key departures

Listed GP is also considering options for its stake in Spanish PE platform MCH, it said in its latest results

  • GPs
  • 28 July 2023

Latest News

Fund closes in US dollars
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote

  • 05 September 2023
Clinical trials and biotechnology
  • Buyouts
Permira to take Ergomed private for GBP 703m

Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO

  • 04 September 2023
Public sector software
  • Exits
Partners Group to release IMs for Civica sale in mid-September

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
EMEA Public to Private M&A
  • Investments
Change of mind: Sponsors take to de-listing their own assets

EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater

  • 04 September 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013