Melior Equity Partners holds EUR 160m final close for debut fund

Melior Equity Partners Fund II was first announced in January 2020, according to Unquote Data. It held a first close in August 2020 on EUR 115m.

Asante Capital acted as placement agent, with Travers Smith providing legal advice.

The vehicle is the GP’s debut fund. Melior was launched in 2020 by partners Jonathan Cosgrave and Peter Garvey. Both were previously managing directors at Carlyle, where they co-led the GP’s Ireland-focused strategy. The strategy saw Carlyle deploy equity via its EUR 292m Carlyle Cardinal Ireland Fund, which held a final close in July 2014.

The fund originally had a EUR 175m target, according to Unquote Data. Asked about the fund's target, Garvey told Unquote that the GP set out to raise sufficient capital to allow it to continue to execute on its existing investment strategy – namely, deploying EUR 10-30m per deal for 10 Irish SMEs.

Melior’s bench of senior advisers and its ongoing connection with Carlyle puts it in a strong position to support its portfolio companies, Garvey said.

According to Unquote Data, the vehicle is the largest Ireland-based buyout vehicle raised to date, other than the Melior team’s previous Carlyle Cardinal fund.

Investors
The fund is backed by a pool of Irish and international LPs including the Carlyle Group, the European Investment Fund (EIF), the Ireland Strategic Investment Fund, the Bank of Ireland, and AIB, according to a statement. The founders of Carlyle have also invested. The fund’s GP commitment is expected to be 3-5%, according to Unquote Data.

In total approximately 60% of the money comes from overseas investors, many of whom have never invested in Ireland before, Garvey said. Irish institutions and family offices have also committed to the fund, he added.

Investments
Garvey told Unquote that Melior aims to fill the financing gap for Irish SMEs. Melior II expects to make 10 investments in total, deploying equity tickets of EUR 10m-30m for businesses with EVs of EUR 20m-100m. The GP will target founder-owned businesses seeking growth opportunities.

“The pipeline has never been stronger,” Garvey said when asked about the fund’s future investments. “Given the limited history of private equity in Ireland, there are a large number of companies seeking investment for the first time.”

The investment and exit track record of Melior’s team will be important for businesses seeking to partner with the firm, according to Garvey.

The GP has made two investments from Melior II, most recently via its investment in Salmon Software, a treasury management solutions software platform. In August 2021, the firm made an investment in not-for-profit insurance brokerage specialist BHP Insurance.

People
Melior Equity Partners - Jonathan Cosgrave, Peter Garvey (partners).

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