Cinven tops up fifth buyout fund to €5.3bn

The final close follows a previous final close of the fund on €5bn in March this year. However, as a number of investors were unable to commit to the fund in time for the 15 March deadline, Cinven requested that the fundraising period be extended to allow new LPs more time to commit. The latest investments have increased the fund's total size by a further €300m.

Following the extension on the fundraising period, Cinven's fifth European buyout fund took a total of 21 months to raise. The fund is understood to have a management fee of 1.5%.

The vehicle is already 16% invested, following the acquisitions of Pronet, Prezioso, Mercury Pharma and Amdipharm.

Investors
The primary investors are public pension funds, insurance companies, corporates, banks, endowments and other private investors.

The average LP commitment in the fifth fund is almost 10% more than in the previous fund. Public pension funds are the largest contributors, accounting for 38% of the LP base. Corporate pension funds committed around 12% of the total capital. Sovereign wealth funds and family offices have also taken a larger share of the LP base than in previous vehicles.

Around 50% of LPs are from the US, compared to around 42% in previous vehicles. European commitments declined slightly in comparison to previous Cinven funds, while total commitments from Asia and the Middle East rose from 10% of the fourth fund to 18% of fund five.

Investments
Fifth European Buyout Fund will make equity investments of €100m and above in firms across the business services, financial services, healthcare, industrials, retail, technology, media and communications sectors.

People
Hugh Langmuir is a managing partner at Cinven, while Alexandra Hess is a partner with responsibility for fundraising and IR.

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• Topics
• Buyout
• Cinven
• Large-cap buyout