C5 to hold double close in December 2020

C5 Cyber Partners II, which was announced with a target of $200m in 2018, has seen one exit and the firm is currently in the process of a second. It is expected to close on its target in the first quarter of 2021. The fund is also currently working on a spate of investments in its focus areas.

The firm's debut impact fund is also expected to hold a second interim close at around the same time, following a first close earlier this year, with a view to a final close in December 2021. Its target and its hard-cap are both $200m.

Launched in February 2020, the firm's impact fund has made two investments, including US-based data security company Enveil. It focuses on investing in critical infrastructure, which underpins efforts to achieve UN development goals, said C5 founder and CEO André Pienaar: "You need to have a secure and innovative structure for these programmes."

The fund, which invests in both Europe and the US, is currently working towards making its third and fourth investments. Both deals, which are expected to close before the end of 2021, will be in the lower earth orbit technology sector.

Rob Meyerson, an operating partner and former president of space technology company Blue Origin who joined the firm in November 2020, said: "We see the sector and the businesses we're looking at as particularly applicable to combatting climate change. This could range from combatting space debris, to observational data, to changing perspectives on how fragile our planet is.

"We think critical infrastructure in this area will give us the opportunity to build an unlimited number of businesses in the future."

The fund offers average ticket sizes of $10m for series-A rounds and is expected to make 10-15 investments with a target holding period of three to five years. Pienaar said: "With such exciting companies, we see a relatively short holding period and we expect some private companies to go public much faster than usual."

Pienaar said: "Investors are increasingly interested in impact investing, which has become much more important. We have leading space industry leaders and operational experts working on our dealflow, and we think LPs like that too."

Pienaar says the fund is enjoying interest from family offices in both Europe and the US, as well as some corporate investors and some institutional investors: "Our LPs really like co-investment options, so we offer it on very attractive commercial terms."

It is understood that the fund is targeting a 5x return and Pienaar said its management fee, carry and hurdle rates are in accordance with market standards.

Domiciled in Delaware, the fund also has a Luxembourg feeder vehicle.

Cooley and Mayer Brown have provided legal advice.

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