Aurel NextStage launches new fund

01 July 2008

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Fund

Aurel NextStage has launched its new fund Aurel NexstStage FCPR Champion Small Cap II with a target of EUR150m and a hard-cap of EUR180m. A first close of EUR60-70m is expected in late summer 2008. The fund will take over from Aurel's previous fund Aurel NextStage FCPR Champion Small Cap, which is currently 83% invested. Acanthus acted as placement agent for the fund while SJ Berwin provided legal advice.

Investors

All the investors in the previous fund, such as Caisse des Depots, have subscribed to the new fund although some have invested smaller amounts. More than 50% of total subscriptions in the fund will be brought by new LPs. The investors will include a number of financial institutions as well as family offices from France and abroad.

Investments

Geographically, 80% of the fund will be invested in France and the remaining 20% will be allocated for the rest of Europe. The fund will focus on small-cap companies with an enterprise value below EUR30m and with revenues of between EUR5-100m.

Aurel will continue their strategy of making growth capital investments in the media, retail, service and manufacturing sectors. Investments will focus particularly on internal growth, geographical expansion, build-ups and innovation integrating. The latter encompasses sustainable development, product integration and IT improvement.

Aurel NextStage typically avoids auction processes and adopts a proprietary approach with companies that fall 'under the radar' generating a dealflow through a network of 1,500 financial advisers. The fund will be invested with little-to-no leverage taking either a minority or majority stake usually as lead investor. The fund will seek to invest tickets of 3-6x the EBIT per deal, representing an average of EUR5m in around 20 companies with investments of up to EUR15m in five companies. Of the annual 400+ investment opportunities considered, Aurel will seek to use the fund to complete between four and eight transactions a year.

People

The fund will be managed by Aurel NexstStage's partners Gregoire Sentilhes, Herve de Beublain, Jean-David Hass and Keyvan Nilforoushan. Armando D'amico worked as placement agent for Acanthus while Xavier Comails worked for SJ Berwin.

Name: Aurel NexstStage FCPR Champion Small Cap II

Target: EUR150m

Focus: Mid-cap

Contact: Gregoire Sentilhes

Address: 25, rue Murillo

75008

Paris

Tel: +33 (0) 1 53 93 49 40

Fax: + 33 (0) 1 53 93 49 41

Advisers: SJ Berwin (Legal)

Acanthus (Placement agent).