BC Partners announces EUR 6.9bn fundraise for BC XI

BC European Capital XI held a first close in September 2020 on EUR 4bn, according to Unquote Data.

Kirkland & Ellis provided legal advice on the fund.

Its predecessor vehicle held a final close in January 2018 on EUR 7bn and was 86% deployed as of March 2020.

A source close to the situation confirmed that the final close fell below the original target. They added that BC had launched the fundraise earlier than planned due to the fast deployment pace of BC Fund X in 2019, but that the GP was not well enough prepared in hindsight.

Prior to the launch, in Q4 2019, gross multiple of invested capital (MOIC) stood at 1.7x and 1.2x for Fund IX and Fund X respectively, versus gross MOIC of 2.9x and 1.8x and net MOIC of 2.4x and 1.6x for both funds respectively today, the source told Unquote.

The GP is expected to launch its next fund in H2 2023, the same source said.

BC's recent activity includes its acquisition of Greece-based pet products retailer Pet City, investing via BC Partners GR Investment LP (BCPGR). The firm created a special purpose acquisition vehicle for Springer Nature in June 2021, joined by Neuberger Burman.

BC Partners declined to comment.

Investors
According to Unquote Data, LPs in the fund include the New York City Teachers Retirement System and the Tennessee Consolidated Retirement System. BC Partners said in a statement that the fund is backed by a long-standing, global investor base.

There were more than 80 LPs in BC Partners' predecessor vehicle, according to Unquote Data. These included a range of institutional investors from the US, Canada, Asia and Europe, including fund-of-funds investors such as Adams Street and LGT, as well as sovereign wealth funds including GIC.

Investments
BC Partners focuses on investments in four core sectors: healthcare, consumer, TMT, and business services and industrials. The GP typically deploys equity tickets of EUR 200m-800m and made 13 investments via BC Fund X, according to Unquote Data. It targets companies with "strong and resilient underlying growth drivers, led by talented incumbent management teams", according to a statement.

BC Fund XI has made eight investments to date, committing more than EUR 2.4bn in capital and providing EUR 1.8bn in co-investment opportunities, the GP said in the same statement.

The fund's investments to date include digital services and business transformation agency Valtech, which the GP acquired in a USD 1.4bn deal in July 2021. In August, the firm acquired ceramics manufacturer Ceramtec, alongside CPPIB in a EUR 3.8bn deal that saw each party take a 50% stake. The company was transferred from Fund X to Fund XI as part of the deal.

People
BC Partners – Raymond Svider (chair).

BC Partners owns a minority stake in Acuris, the publisher of Unquote.

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