BC holds final close on €7bn

Oscar Geen
24 January 2018

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BC Partners has held a final close for BC European Capital X on its тЌ7bn target after two years on the road.

[Editor's note: BC Partners owns a majority stake in Acuris, the parent company of unquote"].

Eight additional LPs, including Pomona Capital IX and Adams Street 2017, made contributions to the fund between November and January to bring the total raised up to the target, according to a public filing.

The GP was thought to be close to holding a final close in Q3 2017 after agreeing a stapled secondary deal with Lexington Partners in August. The final amount committed by Lexington is slightly in excess of €300m, according to filings. Prior to this, the fund had held two interim closes since its launch in January 2016, on €4bn in September 2016 and on €6bn in July 2017.

The vehicle is significantly larger than its predecessor, BC European Capital IX, which held a final close on €6.5bn in February 2012. However, the new fund is the only vehicle above €1bn holding a close in the past year not to significantly exceed its target, according to unquote" data.

The management fee is 1.5% of aggregate commitments during the investment period and 1.25% of aggregate invested capital that has not been realised or written off during the post-investment period.

The management fees will be offset by 100% of all transaction-related fees paid to the manager. BC will charge carry of 20% over an 8% hurdle.

BC did not use a placement agent but took legal advice on the raise from Simpson Thacher & Bartlett.

Investors
The fund received commitments from 130 different investors, including both new and existing LPs. Approximately 35% of the capital came from North American LPs, 25% from Europe and 35% from Asia and the Middle East. Broken down by type of investor, 45% of commitments came from pension funds, 20% from sovereign wealth funds and the rest from banks, insurance companies, endowments, family offices and foundations.

The Canada Pension Plan Investment Board (CPPIB) is the LP with the largest commitment to the fund, with €375m, according to unquote" data. Lexington, the Government of Singapore Investment Corporation (GIC) and the Canadian Public Sector Pension Investment Board all made commitments of €300m or more.

More information including a longer list of LPs is available on the fund's unquote" data page.

Investments
The fund was approximately 30% invested as of October 2017 and had made six European investments: Italian dental service DentalPro, Spanish bridal wear manufacturer Pronovias, German internet hosting and data security company Plus Server, UK bank Shawbrook, German ceramics manufacturer CeramTec and French bank loan manager MCS.

It has also made two investments in American companies and will continue to target large businesses across the TMT, financial services, healthcare, consumer and industrial sectors. Its investment range is €200-800m and 70% of the investments are expected to be made in Europe with the rest in the US.

People
BC Partners – Charlie Bott (head of investor relations).