UK – BC Partners looking to raise EUR 5.8bn for new fund

Deborah
15 January 2010

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BC Partners is reportedly planning to raise a new EUR 5.8bn fund, proof that the large-cap sector could be reviving.

The investment period for the firm's last fund, which also closed on EUR 5.8bn in 2005, is due to expire this November, and is already at least 70% invested.

The fundraising will be a good test of appetite for the top end of the market, as BC Partners has had a rough year in terms of its investments. Just last week, its portfolio company Foxtons underwent a restructuring that will see lenders Bank of America and Mizuho take a majority stake in the company in exchange for cutting the debt in the business from around £300m to £120m. BC invested in the company at the height of the boom in a deal worth £360-390m. The decision proved ill-timed, as the downturn kicked into effect weeks later, prompting a sharp decline in the property markets.

Earlier last year, the private equity firm's portfolio company Baxi, the boiler maker, underwent a EUR 1.7bn merger with Dutch rival De Dietrich Remeha Group to help it repay its £445m debt pile. The deal prevented the company from defaulting on its loans.

Other investments in the BC's UK portfolio include Fitness First, which was purchased in 2005 in a deal valued at £800m.

BC Partners is not the only big-name fund that is currently raising. It has been reported that Blackstone has raised $9bn for its sixth fund so far, with investors looking to bump up their original commitments. Last week too, Clayton, Dubilier & Rice closed its latest vehicle on $5bn, meeting its revised target. The firm had originally been looking to raise $7.5bn, but the closing is still quite an achievement in this market, especially given the fact that the fund closed on $1bn more than its predecessor vehicle.