Access holds first close for co-investment fund on €300m

The fund was launched at the end of the first quarter of 2020.

Agnès Nahum, managing partner at Access, said: "We have one year to raise the fund, so we're not in a hurry. We will definitely be open next year because some LPs will look to include us in their 2021 allocations." When asked about LP appetite in the current market, she said: "If the quality is there, LPs are very happy to continue to back GPs."

"I think what LPs like in our offering is that we focus on the lower end of the buyout market, where you can find quite reasonable entry prices," said Nahum.

Regarding the coronavirus crisis, Nahum said: "We haven't seen a decrease in entry prices yet. It is still quite expensive, but we see GPs reflecting the impact of Covid-19 in their valuations now, so we will see what the situation looks like in Q3."

The fund is structured as a Luxembourg RAIF. Nahum told Unquote that the fund's management, carry and hurdle rates are in accordance with market standards.

The fund's predecessor closed on €226m in December 2016 and is now 92% deployed. "We keep some money for some acquisitions, but the fund is doing well so far," Nahum said. The firm is also looking to make several additional exits, with one likely to close in the coming months. When asked about the impact of the coronavirus on Access's portfolio, she said: "There has been some temporary impact on one or two deals in the first fund's portfolio."

DLA Piper provided legal advice.

Investors
At first close, the fund has five or six existing, institutional investors as LPs, though Nahum said that number will be much larger at final close.

All the fund's current LPs are European, though Nahum said they are looking farther afield: "We are having interesting discussions with investors outside of Europe, but it's very difficult to travel in the current environment. You see some firms claiming they are pleased with virtual fundraisings, but it's not the way we like to fundraise.

"We like to meet people and it's the same with fund management teams to do the right due diligence."

Investments
The average equity cheque from the fund will likely be around €20m. "We have other pockets we can use if we want to do larger tickets," Nahum said.

The fund will make 12-15 investments, which will be held for approximately four years. "We want diversification, but we don't want to be overdiversified," Nahum said. The investment period for the fund is three to four years.

"Our buyout co-investment portfolio displays conservative leverage and disciplined pricing, and LPs like our buy-and-build approach," Nahum said.

Key people
Access Capital Partners – Agnès Nahum (managing partner).

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