Montefiore raises €1bn through two new funds

The fund was launched in December 2019 with a €750m target. It is larger than its predecessor, Montefiore Investment IV, which closed on its €420m hard-cap in July 2016, surpassing its €350m target. 

Montefiore's capital under management now exceeds €2bn. The firm has recently scaled up its team, with six new recruits in 2019 and several promotions. It has also launched a complementary specialist real estate investment business.

Investors
Montefiore Investment V was heavily oversubscribed, with investor demand exceeding 3x the fund's size, and closed after only three months on the road.

The fund's LP base is composed of funds-of-funds, insurance companies, banks, pension funds, government funds and French family offices, as well as university endowments.

Around 99% of the investors in Montefiore's Fund IV re-upped to this new vehicle, alongside several new international investors, mainly pension funds and insurance companies, which were also invited to join the LP base.

Of the fund's commitments, 70% came from outside France: 40% from Europe – mainly Germany, the Benelux region, Scandinavia and the UK – and 30% from outside Europe – primarily the US and Canada, but also Japan, Australia, the Middle East and South America.

Investments
The fund will have great flexibility in terms of ticket size and will be able to deploy checks in the €20-200m range, with a €40-80m sweet spot for initial tickets.

Montefiore Investment V will target 12-15 SMEs operating in the private and B2B services sector, primarily tourism and leisure, as well as healthcare and education.

Target companies will typically have a turnover within the €20-250m range and EBITDA of €3-30m.

The fund will invest most of its capital in France, with the possibility to deploy a minority of its resource in the rest of Europe, primarily Germany, the Netherlands and Italy.

The GP intends to use both funds to support portfolio companies' growth both in France and internationally, and pursue an intensive buy-and-build strategy across the service industry.

Montefiore has backed a total of 120 add-ons in the last few years and has recorded an average increase in revenues among its portfolio companies of 17%, through organic growth and acquisitions.

The fund expects to make its first investment in the Spring.

People
Montefiore Investment – Eric Bismuth (CEO).

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