Star Capital closes latest fund on €800m

Greg Gille
13 July 2017

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Star Capital Partners has closed its Star Strategic Assets III vehicle on its тЌ800m hard-cap.

InfraNews, a sister publication of unquote", revealed in mid-June that the fund was oversubscribed and would close imminently.

Star launched fundraising for Star III in Q4 2015. It secured cornerstone commitments of €175m from both Canada Pension Plan Investment Board and Epsom Investment, a subsidiary of the Government of Singapore Investment Corporation.

The 10-year fund, which held a €248m first close in March 2016, will focus on acquiring European companies. It aims to reduce the risk profile of its portfolio companies over time and grow EBITDA.

Aerius Associates acted as placement adviser and Morrison Foerster provided legal advice.

Star closed its debut fund, Star I, at the end of March 2002 on €581m. The second vehicle, Star II, closed in 2006 on €800m.

Investors
According to public documents, one limited partner to join the fund in recent months is Partners Group, which has committed €73.5m through Partners Group Global Infrastructure 2015 and managed accounts.

In late March, Lombard Odier Investment Managers joined with €17m, while the Shell Overseas Contributory Pension Fund made a €15m commitment.

Investments
The vehicle will keep to Star's existing strategy, investing in European strategic assets that provide an essential service to customers or users and consistently generate long-term returns. Star tends to target assets with an enterprise value between €50m-1bn.

The vehicle has already been put to work for two investments. Star III made its first investment in July 2016, acquiring UK linen and laundry management business Synergy Health Management Services from Synergy Heal for £50m.

In September, it agreed to invest around €60m in Stuttgart-based data centre business Globalways.

People
Star Capital Partners – Paul Gough, Uniti Bhalla (managing partners); Tony Mallin (executive chair).