Industries & Finances hits first close for third fund

Carmen Reichman
14 January 2013

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French buy-and-build specialist Industries & Finances Partenaires (I&F) has held a €60m first close for its third fund, less than six months after launch.

Industrie & Finance Investissements 3 ultimately targets to raise €125m and hopes to hold its final close within the first half of 2013. Ashurst is providing legal advice to the fund.

The GP expects the fund to perform in line with previous funds, achieving returns of around 3x initial investment. Turnover for the portfolio companies in previous funds increased by 17.5% per annum on average over the investment period; 11% was achieved through acquisitions and 6% through organic growth.

Investors
Around 85% of the commitments secured at first close came from investors already subscribed to previous I&F funds. Half of the amount was raised from international investors. The fund's main backers include funds managed by Akina, CDC Entreprises, CNP Assurances, Idinvest, Malakoff-Mederic and a Belgian family office.

Investments
In line with its two predecessors, Industries & Finances Investissements 3 will focus on buy-and-build investments and is exclusively dedicated to sector consolidation. The fund will target small businesses valued at up to €60m in all sectors, in which it will acquire majority interests alongside shareholding managers before scaling the businesses through M&As.

People
Emmanuel Harlé and Pierre Mestchersky created I&F in 1999. Franck Boulland and Pierre Corbet joined from the outset and became partners in 2010, before Sophie Pourquéry joined as a new partner at the end of 2011. The team plans to employ two or three junior team members to work on the GP's third fund.