F&C holds EUR30m first close of Aurora Fund

01 February 2010

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Fund

London-listed private equity investor F&C Private Equity has held a EUR30m first close of its Aurora Fund, a 10-year limited partnership focused on acquiring secondary interests in predominantly European private equity funds and co-investments. The close was held in July 2009, but was not officially announced until December.

The Scotland-based vehicle will seek to raise EUR45m. The minimum subscription for the fund is EUR5m; there is a 1.5% management fee on the net assets of the fund, with no fee on commitments not being drawn down and a 10% carry of total gains. Dundas & Wilson provided legal advice for the vehicle.

Investors

Investors in the Aurora Fund include UK and Dutch pension funds.

Investments

The Aurora Fund specialises in investments in mid-market buyout and mezzanine funds mainly in Europe. It recently made its first investment when it completed the acquisition of Icelandic bank Landsbanki's private equity fund interests in October 2009, representing more than EUR65m of original commitments. More than half of the total fund has been drawn down for this acquisition, as the bulk of the vehicle was meant to be allocated to the Landsbanki interests. However, bolt-on acquisitions and new investments will still be considered.

F&C Private Equity has acquired more than EUR45m of secondary positions since 2004, generating an IRR of 32% at 31 December last year. F&C Private Equity also manages F&C European Capital Partners LP, a fund-of-funds that closed in 2008 on EUR173m.

People

Hamish Mair and Richard Nairn are the main managers of the fund, supported by a team of six investment professionals.

Name: Aurora Fund

Closed on: EUR30m, December 2009

Focus: Fund-of-funds, buyout, mezzanine, Europe

Contact: Hamish Mair and Richard Nairn

Address: F&C Asset Management plc, Exchange House, Primrose Street, London, EC2A 2NY, UK

Tel: +44 20 7628 8000

Advisers: Dundas & Wilson (Legal).