Novalpina holds second close for debut fund

Nicole Tovstiga
21 March 2018

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Novalpina Capital Partners' debut fund has held a second close on тЌ800m, Unquote understands.

The second close last week followed a first close held in November 2017 on €550m. Novalpina's maiden fund, Novalpina Capital Partners I, was announced in May 2017 with a €1bn target.

It will target buyout and growth investments, aiming to acquire a controlling stake in mid-market businesses with an enterprise value of €200-500m, according to Unquote Data.

Novalpina was founded by former TPG Capital executives Stephen Peel and Stefan Kowski, along with Bastian Lueken, former head of Platinum Equity's European investment team. They were joined by Tobias Buck, who invested with Goldman Sachs Principal Investment Area, as well as Mikael Betito, a former Goldman Sachs investment banking analyst.

The fund does not have a specific sector focus but will focus on themes that cause market disruption. These themes include the transition to renewable energy, outsourcing of health services, the drop in commodity prices, digitalisation of commerce, disruption of manufacturing by automation, industry-specific EU regulations and changes to the European banking sector.

The fund aims to return a 20-30% gross IRR and a 2.5x money multiple. It is domiciled in Luxembourg.

Park Hill Group is acting as placement agent for the raise.

Investors
The Oregon Public Employees Retirement Fund made a €200m commitment to the fund, while the GP is looking to place €75m in the vehicle, according to publicly available documents. The Alaska Permanent Fund Corporation committed $59m to the fund.

Investments
The GP is aiming to make between seven and nine equity investments of €75-200m in businesses with enterprise values of €200-500m. It will invest in western Europe with a special focus on the DACH region, the UK and France.

The GP announced the fund's first deal earlier this week, acquiring a 64% stake in Tallinn-based casino operator Olympic Entertainment for around €184m.

People
Novalpina Capital Partners – Stephen Peel, Stefan Kowski, Bastian Lueken (co-founders).