HgCapital hits £2bn hard-cap on European buyout fund

The vehicle, HgCapital 7, will focus on buyouts in Europe with particular attention given to the northern European mid-market. The GP's four sector teams and investment offices in London and Munich will manage the fund.

Having launched in October last year, the fund was oversubscribed and closed above the original £1.75bn target. The vehicle will charge a management fee of 1.75% and general partners will take 20%.

Credit Suisse Group advised on the fundraise, with Proskauer providing legal advice.

Investments
The vehicle is focused on mid-market European businesses with an enterprise value of £20-500m. Particular focus will be given to firms in northern Europe.

Investors
European investors committed more than half of the vehicle's capital, according to reports. the fund's largest backer was HgCapital Trust, with a £200m commitment.

North American pension funds account for around 38% of the fund, with new investors including Pennsylvania Public School, which committed £75m.

People
Craig Donaldson is partner and head of business strategy and client services at HgCapital.

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