Demeter 2 reaches EUR182m in second close

01 September 2009

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Fund

Demeter Partners has held a second close its EUR200m fund Demeter 2 on EUR182m. The fund launched in November 2008 and held a first close on EUR125m (November 2008, page 06). Demeter 2 takes over from its predecessor Demeter, which closed in October 2006 on EUR105m and is now fully invested. Legal advice for the fund was provided by Brunswick & Associes.

Investors

Of the investors that participated in Demeter's previous fund, 80% have returned with more significant contributions. Geographically, 70-80% of investors will be from France, with the remainder from the rest of Europe. Investors in Demeter 2 include two sponsors (CDC Entreprises, IFP Investissement), new investors Total, Credit Cooperatif, European Investment fund (EIF), Suez, Pictor, GDF and Dahlia, as well as returning investors from the first Demeter fund including Robeco, Cardif, CIC and CNP Assurances.

Investments

Demeter 2 will follow its predecessor in being principally used for expansion investments, with 20% of the capital reserved for early-stage investments and 20% for majority investments. Demeter will focus the fund on ecological industries including water, waste and recycling, and also ecological energy sources such as renewable energy, committing half the new fund to these areas. The fund will allocate tickets of between EUR5-15m per transaction with a view to completing 25-30 deals in total. Demeter will deploy around 50% of the fund in France but there will also be an important focus on investments in Spain and Germany.

Recently Demeter 2 invested in German environmental engineering consultancy IGIP. The fund also provided $7m of a $77.6m investment round for California-based SolFocus, a photovoltaic systems company, alongside Apex Venture Partners and previous investors, to fund the company's European expansion plans.

People

The fund will be managed by Sophie Paturle, Michel Ronc, Stephane Villecroze and Lionel Cormier, led by Olivier Dupont. Philippe Brunswick represented Brunswick & Associes.

Name: Demeter 2

Target: EUR200m

Focus: Expansion

Contact: Olivier Dupont

Address: 23, rue de L'Arcade, 75008, Paris

Tel: +33 1 43 12 53 33

Fax: +33 1 43 12 53 30

Advisers: Brunswick & Associes (Legal).