Latour closes second fund on €300m hard-cap

José Rojo
18 December 2015

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French SME investor Latour Capital has closed its second fund on its €300m hard-cap within less than a year.

According to an unquote" source, fundraising for Latour Capital II kicked off in June 2015 and was halted on the vehicle's €300m hard-cap, although investor demand tallied up to €500m, the same source added.

The fund, raised with the help of placement agent Jasmin Capital and legal firm King Wood Mallesons, features a 10-year lifespan and is a standard structure with regards to management fees, hurdle and carried interest.

The vehicle is the second to be launched by Latour Capital since being co-founded by former French finance minister Alain Madelin in 2011. Latour Capital I broke its €100m target with a €115m final close in December 2012. At the time, the GP stated LP appetite for the fund had almost reached the €200m mark.

Investors
Latour Capital II's was backed by 25 investors. The LP base includes institutional investors such as pension funds, funds-of-funds and insurers, as well as individuals such as business angels. No LP emerged as cornerstone, unquote" understands.

The fund received 51% and 49% of commitments from historic and new backers, respectively. In addition, 49% of the capital was sourced from French investors, while the balance was provided by US, Swiss, Danish, UK and German LPs.

Investments
Latour Capital II will seek businesses valued in the €50-200m region; the bracket far outstrips the €15-50m figure sought by the fund's predecessor, according to unquote" data.

With a €15-45m equity ticket, the sector-agnostic vehicle will secure minority and majority stakes through buyout and growth capital deals. The majority of its capital will end up in French businesses, although opportunities from outside the country will be considered.

Latour has already inked a maiden deal for the fund, with work underway around additional opportunities.

People
Latour Capital II will be overseen by the GP's investment team, led by managing partners Cédric Bannel and Philippe Leoni. Having recently recruited an investment director and CFO, the firm is eyeing three additional hires which will bring headcount up to 11 people.