Fondations Capital takes over CM-CIC LBO Partners

Greg Gille
17 October 2013

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Fondations Capital has acquired fellow French GP CM-CIC LBO Partners from CM-CIC Capital Finance, the private equity arm of the Crédit Mutuel-CIC banking group.

Fondations secured a 90% stake in CM-CIC LBO Partners, with CM-CIC Capital Finance holding onto the remaining 10%. The deal, which is subject to regulatory approval, is expected to complete before the end of the year.

CM-CIC Capital Finance will now focus on managing captive funds for the banking group via the CM-CIC Investissement and CM-CIC Capital Innovation arms, whereas the LBO Partners business is dedicated to third-party funds. The bank will still manage retail funds via the CM-CIC Capital Privé division however.

Founded in 2004, CM-CIC LBO Partners focuses on buyouts and manages two FCPR vehicles, CIC LBO Fund and CIC LBO Fund II, totalling €200m in assets under management.

Recent deals completed by the GP include the buyout of online resources management solution developer Sogelink in April, as well as the MBO of French telecoms operator Nerim last year.

CM-CIC LBO Partners will continue operating independently from Fondations Capital and will look to raise a new fund in 2014.

Fondations Capital will have more than €500m in assets under management following the acquisition. The GP manages its €300m maiden fund, Fondations Capital I, which was launched in 2007. Its most recent investment was the secondary buyout of French communications agency Mazarine from LBO France and 123Venture in March this year.

The deal sees yet another French financial institution offloading part of its private equity activities in the wake of tougher regulations. This summer alone saw insurer Axa relinquishing control of Axa Private Equity (now Ardian) in a management buyout, while BNP Paribas Private Equity carved out its direct investments arm (now Isatis Capital). At the start of the year, insurer Groupama sold Acto Mezzanine and fund-of-funds Quartilium – the remaining entities of Groupama Private Equity – to ACG Private Equity.