Xenon closes seventh buyout fund on €300m

Alessia Argentieri
11 November 2019

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Xenon Private Equity has held a final close on €300m for its new buyout fund Xenon Private Equity VII, Unquote understands.

The vehicle is larger than its predecessor, Xenon Private Equity VI, a €184m fund that closed in July 2014 and is now fully deployed.

Investors
The fund's LP base is mainly composed of UK and US-based institutional investors, primarily funds-of-funds, pension funds, university foundations and endowments, as well as German, Swiss, French and Spanish funds-of-funds and pension funds, and only one Italian pension fund.

Investments
Xenon Private Equity VII will acquire Italian companies generating revenues of €30-80m and EBITDA of €2-15m. It will pursue an intensive buy-and-build strategy aimed at building around eight platforms able to lead a niche in the market in the industrial, food, fashion and ICT sectors.

The fund deploys equity tickets in the €15-40m range and co-invests with its LPs for larger deals. It applies moderate leverage of around 3x EBITDA.

Xenon Private Equity VII has already inked two investments, buying steel blades manufacturer CBG Acciai and CRM and business intelligence specialist Impresoft in November 2019. It expects to make two more investments by the end of the year, deploying a total of around €75m.