Access holds EUR 306m final close for second co-investment fund

Ero Partsakoulaki
14 September 2022

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Paris-headquartered Access Capital Partners (ACP) has held a EUR 306m final close for its second co-investment fund, which will continue the GP’s strategy of investing in small-cap European buyout vehicles.

Access Co-Investment Fund Buy-Out Europe II (ACIF BO II), launched in 2021, surpassed its target of EUR 300m. The GP will invest in small- to mid-cap companies backed by GPs in which Access is typically an investor, Managing Partner Philippe Poggioli told Unquote.

The fund will follow the strategy of its predecessor vehicle, which held a final close on EUR 226m in 2016, according to Unquote Data.

The GP is looking to continue to be a significant co-investor in deals. It had in excess of 20% of the capital of the 16 companies it co-invested in with the previous fund, which is now substantially realised, he added.

Both funds are managed by a specific team that is independent from the fund-of-funds offering, with a dedicated investment committee and incentives, as reported.

Fundraising for the GP's ninth flagship fund-of-funds Access Capital Fund IX Growth Buy-Out Europe (ACF IX GBO), launched in September 2021, will be completed in 2023, said Poggioli. The fund has already reached half of its EUR 800m target, he added. The vehicle held its EUR 375m first close in April 2022, as reported.

Investors

ACIF BO II attracted commitments from a broad array of existing and new investors, including insurance companies, public and private pension funds, foundations and family offices across Europe, according to an announcement.

The fund's LP base is exclusively European, with returning investors representing around 75% of the fund and new investors 25%, said Poggioli. "New investors might be investing for the first time in a co-investment vehicle but they might not be entirely new to the Access investors base," he added. Investors come from the UK, France, Germany, the Nordics and Spain.

Investments

The fund is looking to complete roughly 16 deals in total over the next two years within a market-standard lifespan, said Poggioli.

The fund has already completed five investments in companies operating in the IT, healthcare, circular economy, and distribution services sectors, representing around 30% of its total volume. It has invested in the UK, France and Italy for the first five transactions, said Poggioli. The fund has a pan-European approach and will also invest in Germany, Benelux, the Nordics, Ireland and Spain, as with its predecessor, he added.

ACIF BO II will continue targeting non-cyclical and defensive sectors, focusing on businesses with solid visibility of future earnings and cash flows as well as attractive growth profiles, benefitting from strong long-term underlying trends, according to the announcement.

"It happens that many deals among the first five are in the enterprise software space and the healthcare sector, but we do not focus exclusively in any of these," said Poggioli. "We have made two investments in the recycling space for instance."

As with its predecessor fund and in line with its commitment to the UNPRI, Access integrates Environmental, Social and Governance (ESG) criteria throughout the investment cycle, according to the announcement.

People
Access Capital Partners – Philippe Poggioli (managing partner).