UC Capital launches €150m Lions Growth Fund

The fund is structured as a Luxembourg Limited Partnership and will deploy a total of €150m in 10-12 companies over the next four years.

The hard-cap for the fund is set to €180-200m, a source familiar with the matter revealed, adding that the fundraising process would start this week. Fund managers are hoping to close the fund in around a year.

GP commitment in transactions is fixed to a minimum 2%. Management fee will be budget-based, while the hurdle is set at 8%. Fund managers will also get a 10% equity at the start, complemented by a 10% carry at the exit.

It is the first fund raised by UC Capital since it merged with Secure Trading Group.

Investors
While specific LPs have not been named yet, UC Capital said it would look at family offices mostly located in Europe, as well as funds-of-funds and pension funds.

Meetings with LPs are due to start this week in Paris, Madrid, Zurich and Milan.  

Investments
The fund will target companies operating in sectors such as infrastructure (solar, construction, utilities, energy); manufacturing and engineered products; advanced materials; healthcare; and automotive.

It will invest €4-20m tickets per deal, aiming at 3-5x returns. Target companies will mostly be European SMEs with turnover in the €10-80m range facing depressed home markets, and in distressed or special situations. Stand-alone attractive Indian SMEs will eventually also be targeted. 

The fund will make majority investments mostly, looking to drive growth through improvement in home market operations, as well as market share expansion in India and other emerging markets (the Middle East, Asia and Africa).  

People
UC Capital – Mark Marti-Erfurt, Varun Sood, Jozef Jansen (partners). 

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