Metric Capital to hold first close for EUR 1.5bn fund in spring

Ero Partsakoulaki
24 February 2023

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Metric Capital, a UK-based investor in mid-sized companies, is set to hold a first close for its fifth, EUR 1.5bn fund in the spring, a source familiar with the situation told Unquote.

Informal talks with existing LPs started this year, the source said, adding the first close could be held as early as April or May.

According to Unquote Data, LPs in the Metric's previous vehicles include Texas County and District Retirement System and Florida State Board of Administration, among others.

New investors could be targeted after a second close, although a decision on adding new LPs is yet to be made, the source added.

The new fund, expected to close towards the end of the year, will follow its predecessor's strategy with marginal changes in the size and number of deals, the source added. The target of EUR 1.5bn is also a hard cap for the vehicle.

MCP Private Capital Fund IV closed at EUR 1.15bn in December 2019 and has a mandate to invest in European opportunities with attractive risk-adjusted returns. MCP typically partners with entrepreneurs, management teams and shareholders to structure bespoke instruments that better achieve stakeholders' objectives than traditional funding sources. Typical strategies include growth capital, shareholders' consolidation, buy-and-build, balance sheet optimisation and post-turnaround, according to Unquote Data.

The investment period for Metric Capital's fourth fund will close this year with the fund making about 13 to 14 transactions in total. The vehicle is about 85% invested as of today, the source said.

Fund V will only open for investments once MCP IV is fully invested, the source said.

Most recently, the firm deployed capital from its fourth vehicle in Australia-based Mexican restaurant chain Zambrero in a funding round led by Skip Capital.

Metric Capital Partners declined to comment.