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European PE funds: top 5 closes of 2015 so far

Top 5 European fund closes of 2015
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With its seventh vehicle reaching its €6.75bn hard-cap, EQT has added to the growing list of buyout houses closing their latest Europe-focused funds well in excess of €1bn this year. As we move in to H2, unquote” looks back on the top five European fund closes of 2015 so far

5.) Equistone Partners, EPEF V
How much: €2bn
How long: around six months

The smallest fund on our list can, however, rival EQT when it comes to timing: it took Equistone just six months to reach the €2bn hard-cap of its latest effort, Equistone Partners Europe Fund V (EPEF V).

The vehicle was launched in October last year with a €1.75bn target and closed in April, having secured 80% of commitments from investors in previous Equistone vehicles.These LPs were no doubt pleased by the manager's ability to put money to work: Equistone's previous vehicle – the first to be raised by the GP since its spinout from Barclays – had raised €1.5bn just two years prior to the final close of EPEF V. Find out more about this fund

 

4.) PAI Partners, PAI Europe VI
How much: €3.3bn
How long: around 21 months

The final close of PAI Europe VI on its €3.3bn hard-cap in Q1 this year showed how the Paris-based GP managed to turn its fortunes around, following a rough patch in the immediate aftermath of the global financial crisis.

PAI began fundraising in the spring of 2013 after an intense pre-marketing effort. The fund's hard-cap of €3bn, which was reached back in January, was raised to meet demand from investors, the GP said at the time.

The buyout house had raised €5.4bn for the fund's predecessor in 2008, but internal controversy sparked by the arrival of Lionel Zinsou resulted in the departure of key partners Bertrand Meunier and Dominique Mégret. This triggered a key-man clause on the 2008 fund, which was ultimately halved to €2.7bn.

PAI has since then undertaken a hefty divestment effort, and was earlier this year believed to have returned around €7bn to its investors, with an average 3.5x return on investment. Find out more about this fund

 

3.) Carlyle Group, Carlyle Europe Partners IV
How much: €3.75bn
How long: around 30 months

Carlyle may have taken a bit longer than the others on this list to close its latest Europe-focused fund, but the buyout giant nevertheless managed to significantly exceed its initial target of €3bn.

The GP eventually announced in July that it had raised €3.75bn for its Carlyle Europe Partners IV (CEP IV) fund, reaching the vehicle's hard-cap. The fund was launched in January 2013 and reached a first close on €1.25bn in August 2013, before holding an interim close on €1.55bn in January 2015 and gaining ground rapidly after that.

But Carlyle also opted for a more modest effort in this post-crisis era: CEP IV's predecessor, Carlyle European Partners III, had raised €5.35bn in September 2007. Find out more about this fund

 

2.) Bridgepoint, Bridgepoint Europe V
How much: €4bn
How long: around 11 months

Bridgepoint is another industry stalwart that managed to beat expectations for its latest fundraising effort: the GP raised €4bn for its Bridgepoint Europe V fund in March, exceeding its €3.5bn target.

The fund was launched in May 2014, held a first close on €2bn in October, and had reached its target by the end of 2014. The entire fundraising process took around 11 months. Bridgepoint V is, however, slightly smaller than its predecessor fund Bridgepoint IV, which closed on €4.8bn in 2008.

The latest vehicle received commitments from existing investors, which on average increased their investment by 25% according to the manager. It targets European businesses with enterprise values of between €150-600m. Find out more about this fund

 

1.) EQT, EQT VII
How much: €6.75bn
How long: less than six months

The latest mega-fund raised in Europe also tops the list by some margin: it took Swedish GP EQT less than six months to close its seventh buyout fund, EQT VII, on its €6.75bn hard-cap in early August. It was first reported in November last year that EQT was planning to raise a €5.25bn fund, launching in January 2015.

Sources close to the matter, present at the unquote" Nordic Private Equity Forum on 5 May, indicated that the fund had attracted demand amounting to €12bn from potential investors. More than 70% of commitments came from previous investors, and the fund was described by the GP as "significantly oversubscribed".

The new vehicle follows EQT's €4.75bn EQT VI fund and is understood to be the third fund launched by EQT in 2015, though the first one to be officially confirmed by the firm. Find out more about this fund

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