unquote" data snapshot: largest buyout fundraises of 2016

The number of €1bn+ buyout funds raised throughout the course of 2016 dipped considerably, according to unquote” data with just 12 such vehicles holding final closes, compared to 20 in 2015, 16 in 2014 and 15 in 2013.

However, a number of large-cap players remained active on the fundraising front, with Advent International closing its latest vehicle on $13bn in March and, more recently, Apax Partners closing its ninth flagship fund on $9bn.

Below are the five largest funds with European remits to have held final closes throughout the year.

5. Ardian LBO Fund VI - €4bn
In September, Ardian held a final close on €4bn for its sixth mid-cap fund, Ardian LBO Fund VI, after four months on the road, in addition to securing €500m for co-investment opportunities with LPs. Around two thirds of LPs that made commitments to the fund’s €2.41bn predecessor re-invested, committing 112% of the amount raised in the previous generation. The LP base comprises institutional investors, pension funds and sovereign wealth funds. The vehicle targets companies with enterprise values of €175m-1.5bn, with 85% of its capital earmarked for investment in the GP's core markets of France, Italy and Germany, as well as Benelux, Austria and Switzerland.

4. Sixth Cinven Fund - €7bn
Cinven held a final close for its sixth fund on its €7bn hard-cap after just four months on the road in June. The vehicle surpassed the €5.3bn total raised by its predecessor, which had held a final close in June 2013. At the time, Cinven stated the fund received strong support from existing LPs, with a re-up rate in excess of 90%. Sixth Cinven Fund has a generalist remit, investing €150-600m in MBOs and management buy-ins across Europe, the US and Asia. The GP focuses on investments across six sectors: business services, financial services, healthcare, industrials, consumer, technology, media and telecommunications.

3. Apax IX - $9bn
Apax Partners held a final close for Apax IX on the vehicle's hard-cap of $9bn in December, exceeding the original target of $7.5bn set when the fund was launched in January 2016. The dual-currency vehicle (US dollar and euro) is 20% larger than its 2012-vintage predecessor and attracted commitments from existing and new investors. LPs include public and private pension funds, sovereign wealth funds, funds-of-funds, insurance companies, endowments, charitable foundations and high-net-worth individuals. As with its predecessors, Apax IX will focus on the technology, telecommunications, services, healthcare and consumer sectors. It has already made investments in marine industry online marketplace Dominion Marine Media and Unilabs, a medical diagnostics business.

2. TPG Partners VII - $10.5bn
In May, TPG Capital held a final close for its seventh buyout fund on $10.5bn, above its $8bn target. At the time, a source close to the situation told unquote" the vehicle was oversubscribed, with the GP forced to limit commitments from some LPs, while other investors were unable to be accommodated at all. However, the latest fund is some way short of the $19bn raised by its predecessor, which was impacted by the effect of the financial crisis on assets. Commitments to the new fund came from a mixture of new and existing investors, with the GP and its staff together committing $400m. To date, TPG Partners VII has completed one European deal, making a $150m all-equity majority investment in UK value retailer Poundworld in May 2015.

1. Advent GPE VIII - $13bn
Advent raised the largest buyout fund with a European remit in 2016, closing its GPE VIII vehicle on $13bn in March. The firm's eighth global private equity vehicle reached its hard-cap after six months on the road, surpassing the €8.5bn raised by its predecessor. At the time, a source told unquote” that GPE VIII will only charge a 1.5% management fee once the previous vehicle is 75% invested and will not feature a preferred return. Carry is set at 20% with a clawback provision. It is also understood 90% of all commitments to GPE VIII came from existing investors. Advent stated the fund will pursue the same strategy as its predecessor, targeting buyouts, recapitalisations and growth equity transactions in Europe and North America. Investments in Asia and Latin America will also be considered on an ad hoc basis.

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• Topics
• Fundraising
• GPs
• Top story
• Top 5
• Cinven
• Advent International
• TPG Capital
• Apax Partners
• Ardian (formerly Axa PE)