Investindustrial holds final closing at EUR1bn

01 April 2008

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Fund

Southern European buyout house Investindustrial has closed its fourth vehicle, Investindustrial IV LP at EUR1bn. The target had originally been set at EUR800m.

Investindustrial's chairman Andrea Bonomi said: "The fund was significantly oversubscribed and although there was some disappointment by those investors who did not manage to get in, the decision to maintain the fund at a EUR1bn mark was well received."

Fees were set at the industry standard and the timing of carried interest follows a traditional structure. The general partner made a substantial contribution to the fund, which was a feature supported by the investors who were keen to have an alignment of interest. The fund has a lifespan of 10 years with a three-year extension and no restrictions.

MVision Private Equity Advisers acted as the global placement agent, while SJ Berwin was retained as legal adviser.

Investors

The commitments to the fund come from Europe (65%), North America (25%) and Asia (10%). Investors include pension funds, insurance groups and banks (37%); funds-of-funds (32%); family offices and endowments (23%), and government funds and agencies (8%).

New investors include Adams Street Partners, AlpInvest, AXA Private Equity and HarbourVest, while existing investors which continued with the programme included Adveq, ATP Private Equity Partners, New York Life Insurance Company, Princeton University, Wilshire Private Markets Group, an Asian government and a large Ontario-based pension fund.

Investments

The fund will target mid- to large mid-market buy-and-build buyouts primarily in Italy and Spain. The strategy will consist of investments at a "super regional" level. According to Bonomi, "this will allow the fund to tap into a niche at the regional large-mid-market segment - companies up to EUR500m in enterprise value and requiring investments between EUR50-150m equity - permitting it to benefit from a comparative local advantage."

The fund will seek to finance 10 portfolio investments. Transactions alongside other GPs will not be part of the core strategy, but the general partner will seek co-investments with the LPs of the fund.Currently there are three deals in the pipeline targeted for completion in the second quarter of 2008.

People

Investindustrial is led by Andrea C Bonomi as the chairman of the group. Bonomi is supported by investment teams in the UK, Luxembourg and Switzerland and by independent advisory teams in the UK, Italy and Spain.

Name: Investindustrial IV LP

Target: EUR800m

Closed: EUR1bn - February 2008

Focus: Iberian buyouts

Contact: Andrea C Bonomi

Address: Investindustrial

51 Avenue JF Kennedy

1855 Luxembourg

Tel: +35 226 09 531

Fax: +35 226 095 340

Advisers: SJ Berwin (Legal).