Siparex kicks off Midcap 4 fund deployment as fund nears EUR 250m target

The GP started fundraising for Midcap 4 in October 2022 and has manged to secure EUR 220m in commitments against its EUR 250m target “despite the challenging market conditions,” said the investment committee member.

It expects to hold a final close at its target towards the end of the year, he added. High net-worth individuals make up approximately 35% of the fund’s LP base, with the remainder comprising institutional investors from France and Europe, he said.

The fund will follow the strategy of its predecessor Siparex Midcap 3, targeting companies with a turnover between EUR 15m-EUR 100m. It will primarily target companies based in France, but will also acquire equity stakes in Italy and Spain. The fund, which held a final close on EUR 170m in November 2018, is now fully deployed and about 50% realised, he said. It is expected to reach 100% distribution to paid-in capital (DPI) in the next 12 months, he added.

Unrealised investments from the fund include French designer and supplier of funerary monuments GPG Granit, French technical expertise management software developer Bassetti and France-based delivery services provider Top Chrono.

Midcap 4 will dedicate a slightly larger percentage of its portfolio, about 60%-70%, to majority stakes, he said, while increasing its equity tickets, deploying EUR 5m-EUR 20m, compared to EUR 3m-EUR 12m in the previous fund. It will target companies across sectors, he added, noting that the decarbonisation theme will be central to its deployment strategy.

Re-investment growth potential
The firm decided to reinvest in Cevino Glass, given the company’s long-term presence in the glass making industry, good distribution of turnover across many clients, and the growth potential of the market supported by French authorities’ new building insulation regulations, Bordeaux-Montrieux said.

The firm led the investment alongside a pool of investors including Bpifrance and Rives Croissance, a Paris-based equity investor and wholly-owned subsidiary of Banque Populaire Rives de Paris, according to an announcement. Cevino Glass’ management team, led by Thierry Gautier, will remain the majority shareholder, it said.

Siparex had previously invested in the company via its Intermezzo 2 fund in 2019, supported by France-based GP Re-Sources Capital, it said. The fund, which targets large SMEs and small to mid-sized companies, held a final close on EUR 200m in December 2020 and is now almost fully deployed, with a new vehicle for the strategy underway, Bordeaux-Montrieux said.

Company
Founded in 2012 by its current president Thierry Gautier, Cevino Glass is a French glass processing company, particularly for the energy renovation sector. The group covers all areas of flat glass, from shaping (finishing of edges, holes and notches, digital printing, sandblasting, lacquering) to installation, including insulating glazing, lamination, quenching and bending. It markets the brands Le Kap Verre and Miroiteries Dubrulle, both located in the north of France, as well as Lukora, located in the Lyon region and Paris-based Averia. It operates 19 sites spread from Dunkirk in the north of France to Lyon in the south-east and serves 4,500 customers. It employees 330 people and has more than EUR 54m in turnover.

People
Cevino Glass – Thierry Gautier (director).
Siparex − Stéphane Agaësse (director at Siparex Midcap), Pierre Bordeaux-Montrieux (managing partner), Pierre Kovalenko (investment manager).
Bpifrance − Gabrielle Tétart (investment director), Alexandre Vandenabeele (investment manager).
Rives Croissance − Denis Couderchet (director), Bruno Warnet (investment manager), Benjamin Dejade (private equity analyst), Gaëlle Oudin (lawyer).

Advisers
Company – DLGA Charles Delavenne, Guillaume Bain (legal).
Equity – Reed Smith Marc Fredj, Degroux Brugère Jérémie Swiecznik (legal); KPMG Clément Lefort (due diligence).

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