Capital Dynamics holds $383m final close for co-invest fund

Oscar Geen
18 October 2017

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Capital Dynamics has held a final close on $383m for its latest co-investment vehicle, Mid-Market Direct IV.

The vehicle has surpassed its $350m target after holding an interim close on $200m in May 2017.

Capital Dynamics said the vehicle is more than 25% invested across seven investments with a broad geographic and industry diversification.

The previous fund in the series, Mid-Market III, targeted $250m and held a final close on an undisclosed amount in January 2014.

Investors
Mid-Market IV's LP base consists of new and existing investors, including pension funds, insurance companies, family offices and high-net-worth individuals from the US, the Middle East, Asia and Europe. Approximately €200m of the vehicle's commitments are from European LPs.

Capital Dynamics has taken a large stake in the fund through its feeder vehicles, amounting to a commitment of €161m. According to publicly available documents, LPs in these feeder vehicles include private German investors Auretas Private Equity and Wittelsbacher Ausgleichsfonds; German insurance company Sparkassen; UK pension funds Flintshire County pension fund and Derbyshire pension fund; and PAT BVG, a German pension fund for doctors and vets.

Fund-of-funds BVT Unternehmensgruppe also took a €3m stake in the fund directly, according to the documents.

Investments
The fund will target mid-market co-investment opportunities globally, primarily focusing on the energy, technology, consumer, healthcare, financial services and industrials sectors.

It will make around 40% of its investments in Europe, 40% in the US and 20% in the rest of the world.

People
Capital Dynamics – David Smith, Andrew Beaton (co-heads of investment).