Edmond de Rothschild PE closes Eres III fund on €300m hard-cap

The fund, which had been on the road for nine months overall, exceeded its €250m target. Interim closes were held at €120m and around €250m.

The fund's previous generation, Eres II, which closed on €217m in 2011, has now been fully deployed.

Headed by managing directors Jean-François Félix and Jérémie Mélin, the Eres team regroups 10 professionals with experience in the private equity, M&A and strategy fields.

Investors
LPs hail from France and abroad, with significant funding coming from Asia (10% of overall commitments were raised in Hong Kong alone). LPs are divided relatively evenly between France, the rest of Europe, Asia and the US. Around a third of LPs are institutional investors, and the rest are family offices, high-net-worth individuals and banks.

The product encompasses two sub-funds: a SICAR fund based in Luxembourg, in which most international LPs invested; and an FPCI fund based in Paris representing around €100m of the total, in which French LPs invested. The fund structure includes a co-investment clause, according to which both sub-funds are entitled to invest an equivalent portion (proportional to the respective original commitments they received) for each investment made by Eres.

Investments
Eres will continue its strategy of investing as a minority shareholder in support of majority partners in mid-cap deals with an enterprise value between €100m-€2bn. Eres III can be invested at up to 50% outside Europe and has an investment horizon of four to seven years.

It will invest between €10-45m per transaction with around 15-20 investments planned in total. Edmond de Rothschild PE stated the fund would be able to contribute at several possible stages of the investment process: before exclusivity, where Eres will participate in the due diligence with its partners and commit to the overall total equity; between exclusivity and closing, where Eres can fund up to half of the amount of the transaction until its majority partners syndicate to their own investors; or during the life of an investment in cases where a majority shareholder has to re-inject equity into a portfolio company and can partner with Eres on the transaction to avoid inviting a competitor.

The first deal should be announced within the next fortnight, a source familiar with the matter told unquote".

People
Edmond de Rothschild Equity Strategies – Jean-François Felix, Jérémie Mélin (managing directors).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Funds
• Buyout
• France
• France
• Rothschild