Altamar V holds first close on €120m

Susannah Birkwood
05 September 2011

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Altamar Private Equity has held a first close of its fifth fund-of-funds, Altamar V Private Equity Program, on тЌ120m.

Launched in March, this latest vehicle estimates that it will reach €200m by the end of 2011 and has a target of €250-300m for its expected final close in the first half of 2012. It has a lifespan of 10+1+1 and a three-year investment period. It was structured by Altamar's internal legal counsel and received advice from legal firms in Peru and Colombia.

The fund consists of the principal vehicle, which is registered in Madrid, as well as a feeder fund, in which Chilean investors may participate.

Minimum subscriptions are €2.5m, while the GP contribution is 2%. The management fees start at 0.5% for uncommitted capital and 1% for committed funds. Average fees will therefore be 65-70 basis points per annum over original investor commitments. The hurdle is 8%, while the carry is 5% and will be paid on the fund as a whole.

Altamar V is a successor to Altamar funds I, II and IV, which each raised between €65m and €505m, and fund III, which raised €136m for investment in European real estate.

Investors
Most of the investment thus far has originated from pension funds and insurance companies, as well as several large Spanish family offices. Of the €250m target, it is expected that two thirds will come from investors in Spain and one third from Latin Americans; Chile, Peru and Colombia in particular. The pension funds have committed capital superior to €10m, while the family offices each contributed less than this amount.

Investments
The fund will take primary or secondary positions in mainly mid-market buyout funds in Europe, the US and Asia. A small percentage of the vehicle will also participate in special situation vehicles.

Six investments have already been realised: Two pan-European secondary deals involving vintages from 2006-07 and four primary transactions with US and pan-European funds. The capital injected constitutes almost 40% of the amount raised so far, or around 20% of the projected final amount raised.

Between €8-20m will be invested per transaction for stakes ranging from less than 1-5%. Around 20 deals will be completed in total, averaging 5-6 per year.

People
Claudio Aguirre is the chairman of Altamar. He is also an adviser to Goldman Sachs and former chairman of Merrill Lynch in Spain. He manages Altamar V alongside Mariano Olaso-Yohn, José Luis Molina and Inés Andrade Moreno, as well as a team of 33 private equity professionals.