Chequers Capital closes fund XVI on €850m

Greg Gille
05 July 2011

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French mid-market GP Chequers Capital has announced the final close of its latest fund on a €850m hard cap.

Chequers Capital XVI was launched in March this year with a €800m target. According to the GP, the vehicle was oversubscribed and voluntarily limited to a €850m hard cap in order to stay focused on its mid-cap strategy – it could have potentially attracted €2.3bn worth of commitments.

Due diligence and track record checks were conducted in March. On-site visits took place in April, while legal and closing procedures were wrapped up by the end of May.

The fund has a 10-year lifetime with a five-year investment period. Management fees, hurdle and carry were set at 2%, 6% and 20% respectively. MVision Private Equity Advisers acted as the global placement agent for Chequers, while SJ Berwin was mandated as legal counsel.

The fund's predecessor, Chequers Capital XV, closed on €600m in May 2006 after a four-month fundraising process. According to Chequers, 12 out of the 14 buyouts it completed were primary transactions.

Investors
Of the 55 LPs invested in Chequers' previous vehicle, 45 decided to commit to the new fund. They were joined by 10 new LPs, bringing the total LP base back up to 55 investors.

Pension funds and sovereign wealth funds contributed 61% of the fund, 31% of commitments came through funds-of-funds and gatekeepers, while the remaining 8% were commited by other types of investors.

New investors mainly included sovereign wealth funds and pension funds – no new funds-of-funds were added to the LP base. They contributed €250m to the vehicle.

Geographically, North American investors contributed 56% of the fund, European investors 26% and LPs from other regions 18%.

Investments
Chequers Capital XVI will look to take majority stakes in primary buyouts of French mid-market companies valued in the €30-300m range, regardless of the sector they operate in. The usual equity ticket will range from €20-100m.

The fund will aim to complete 15 buyouts over its investment period.

People
The fund will be managed by Chequers' team of 14 professionals, led by CEO Denis Metzger.