Montefiore Investment IV closes on €420m hard-cap

Alice Tchernookova
25 July 2016

Tweet
Facebook
LinkedIn
Google plus
Send to

Montefiore Investment has closed its latest fund, Montefiore Investment IV, on its €420m hard-cap, ahead of its €350m target.

The fund was raised in three months, the GP said in a statement, adding that commitments had to be scaled back to meet the hard-cap.

With this new fund, Montefiore Investment's total assets under management exceed €1bn. The Montefiore III fund had closed on €240m in 2013.

Since the beginning of the year, Montefiore has performed three divestments: B&B, Demos and ISPS. More recently, it also invested in two French companies – online flight booking website Misterfly and fashion design brand Isabel Marant.

Montefiore reported a 20% net investor IRR over a 10-year period. According to the GP, companies backed by Montefiore funds report an annual average growth rate of 15%.

ELM Capital acted as placement agent for the fund, while Clifford Chance provided legal advice.

Investors
More than 90% of Montefiore's existing investors chose to invest again in this fund, with their commitments accounting for 75% of the total. Private investors and entrepreneurs represent 25% of the fund, the remaining 75% being institutional investors. These include funds-of-funds, insurance companies, banks, pension and government funds, and university endowment funds.

The share of international investors went up to 60%, with Montefiore now counting North American (US, Canada), Asian (Korea, Japan) and Australian investors, alongside its European investor base.

Investments
Company size and investment tickets will be similar to those of previous funds. The fund will target French SMEs in the private and B2B services sector (tourism, leisure, and others) as well as those providing health or education services.

Target companies will typically have a turnover within the €20-200m range and an EBITDA ranging between €3-30m. The fund will invest in equity tickets starting from €10m and up to €50m, which can be raised to €150m in case of co-investment.

The significantly bigger size of this fund will enable Montefiore to support its portfolio companies to a larger extent and on a longer-term scale. The number of companies backed by the fund should also be on the rise, according to the GP.

People
Montefiore Investments – Daniel Elalouf (managing partner); Eric Bismuth (CEO).