BlackFin closes third buyout fund on €985m

The pre-marketing of BlackFin Financial Services Fund III started in February and the fund's initial target was set at €750m, a spokesperson for BlackFin confirmed to Unquote. 

BlackFin Financial Services Fund II, the fund's predecessor, closed on €400m in February 2016. 

Placement agent Jasmin Capital supported the fundraising via French institutional LPs, while Rede supported the international fundraising, Unquote has learned.

The fund's terms will follow the 2-8-20 standard. Each of BlackFin's investments generated a gross profit of more than 3x, according to a spokesperson of the firm. 

Investors
Around 40% of investors in the vehicle are French. European investors from outside France (based in Switzerland, Germany, the Nordic countries, the UK, Spain and Italy) as well as US LPs, both represent around 30% of backers, Unquote understands.   

The LP base is mostly composed of institutional LPs, including banks and insurance companies (30%), funds-of-funds (25%) and pension funds (20%), a spokesperson for BlackFin disclosed. 

BPI France and the European Investment Fund together contributed 15% of the capital, the source added. 

Los Angeles County Employees Retirement Association, investing $100m, and the European Investment Fund made commitments, according to Unquote Data.

Investments
The fund seeks asset-light companies in the continental European financial services sector. Segments targeted by the GP include asset management, institutional and retail brokerage, insurance, and banking products distribution.

Backed businesses will generate EBITDA in the €3-30m range. The size of the target companies should not fundamentally differ from the previous vehicle. However, the fund will invest in around 15 companies instead of 10 and provide tickets of €10-200m. Moreover, portfolio companies will pursue more ambitious external acquisition strategies than what previously seen. 

Investments in Europe but outside France accounted for 50% of transactions for the fund's predecessor, they should account for around two thirds for BlackFin Financial Services Fund III.

The fund will start to be deployed in Q1 2020. 

People
BlackFin Capital Partners – Paul Mizrahi (co-founder).

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