MBO & Co closes fifth fund on EUR 320m

Harriet Matthews
16 December 2021

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France-headquartered MBO & Co has held a final close for MBO Capital 5 on EUR 320m.

The fundraise took six months and saw the fund close above its target, according to a statement. The fund was in the market from January 2021 to June 2021, head of investor relations Géraldine Lanthier told Unquote.

Goodwin provided legal advice on the fund.

The vehicle's predecessor, MBO Capital 4, held a final close in November 2016 on EUR 250m, surpassing its EUR 200m target. MBO 5 will follow the same strategy, targeting SMEs in sectors including healthcare, software, technology and B2B services.

MBO & Co has completed four investments to date in 2021, deploying EUR 90m in total. The GP has also made five exits, generating proceeds of EUR 140m and an average money multiple of 4.3x. These included the sale of pre-clinical research provider IMMR to Summit-backed Veranex in October 2021, as well as MBO 4 portfolio company Construplas, a Spain-based bathroom fixtures producer, being sold in February 2020.

Investors
All LPs in the fund's predecessor vehicle re-upped for MBO 5, the GP said in a statement, with a limited number of new investors joining the LP base.

The majority of the LP base comprises institutional investors such as funds-of-funds, insurance companies and foundations, while 15% is made up of high-net-worth individuals, including entrepreneurs and family offices, Lanthier said.

The LP base is made up of a 50:50 split between French investors and non-French LPs, most of which are from elsewhere in Europe.

The GP has also added its first ever Chinese LP for MBO 5, Lanthier added.

Investments
MBO 4 deployed equity tickets of EUR 5m-20m, according to Unquote Data, targeting both minority growth and majority buyout deals. One third of the fund was allocated to investments beyond France, with the remainder expected to be dedicated to domestic deals.

MBO 5 will invest in companies with enterprise values of EUR 20m-150m and is 20% deployed across its two current investments. It aims to back 12-15 companies in total, with the fund expected to be deployed over four to five years.

The fund has one additional deal in its pipeline. Asked about prospects for next year, Lanthier told Unquote: "The pipeline is strong, and consistent with what we are looking for, namely companies in future-proof sectors, experiencing growth, and that positively impact their environment and stakeholders (employees, customers and partners), with high-flying management teams. We expect strong investment activity in 2022."

The GP announced the acquisition of the service division of France-based digital consultancy Klee Group earlier in December 2021.

People
MBO & Co – Eric de Joie (CEO); Géraldine Lanthier (head of investor relations).