Harbert European Growth Capital Fund, an alternative investment fund sponsored by Harbert Management Corp., has raised approximately 93 million euros in its most recent close. The fund is targeting 200 million euros and is slated to hold its final close in December 2014.
LONDON, UNITED KINGDOM–(Marketwired – May 09, 2014) – Harbert European Growth Capital Fund LP (“HEGCF”) announces its most recent close bringing equity commitments to a total of approximately EUR93 million as of 1 May, 2014. The Fund is currently anchored by a European pension plan, a European government institution, a number of family offices and high net worth individuals, and HMC’s cornerstone investment of EUR25 million. The Fund is targeting EUR200 million in commitments and is scheduled to hold its final close in December 2014.
HEGCF provides specialty debt financing to European based, rapidly growing small and medium sized enterprises (“SME”s), predominantly in the information technology, life sciences and e-commerce sectors. Typical loan facilities range from EUR2-10 million with the flexibility to do larger transactions opportunistically.
Commenting on the fundraising progress so far, HEGCF co-Head and Senior Managing Director David Bateman suggests that “the absence of bank financing for SMEs and the cost of private equity in this space across Europe represents an opportunity to support high growth businesses in need of capital to drive organic growth, make acquisitions, invest in fixed assets and engage in various forms of recapitalization.”
HEGCF made its first loan in July 2013 and is presently closing its tenth deal, creating a diverse portfolio of loans across mostly Western and Northern Europe. According to co-Head and Senior Managing Director Johan Kampe, “We are very pleased with the investments we have made to date, and strength of our deal pipeline suggests particularly favourable conditions for our strategy, serving the many and geographically dispersed innovative growth companies across Europe.” All loans are performing as anticipated, and the Fund has already made its first cash distributions to investors. The Investment Team will continue to focus on investments that exhibit strong current cash returns, yield enhancement potential and long term equity upside. More detail on the Fund can be found at http://www.harbert.net/investment-strategies/european-growth-capital/.
HMC, an alternative asset management firm with approximately $3.5 billion in assets under management as of 1 May, 2014 is a privately-owned firm formed in 1993 to sponsor alternative asset investment funds. HMC serves foundations and endowments, funds of funds, pension funds, financial institutions, insurance companies, family offices and high net worth individuals across multiple asset classes. Besides European private debt investment strategies include European and US real estate, venture capital, mezzanine debt, independent power, US and Australian private equity, and public securities. Additional information about HMC can be found at www.harbert.net.