Hibernia Tops Target For Maiden Fund

Hibernia Capital Partners, the independent Irish private equity house formed last year by Frank Reihill & Co and The Chart Group (EVCJ October/November 1997, page 12), closed its first private equity fund 22% over target on IRGBP 61 million (ecu 78 million) in April. The vehicle currently ranks as the largest private equity fund in Ireland, although another Irish fund currently in the market, ACT ’98, has a target of IRGBP 75 million (EVCJ December 1997/January 1998, page 8).

Hibernia rounded up 39 investors in all for the Hibernia Fund. Hibernia chief executive David Gavagan said a substantial number of participants were “non-institutional, including several international industrialists”. The industry experience and connections of its investors and board are a crucial element in Hibernia’s strategy of adding value to investees in international markets.

Major investors include Bank of Ireland Asset Management, Chase Capital Partners, Davy Private Clients, Foreign & Colonial Ventures, Friends Provident, Montgomery Oppenheim, Norwich Union, Nova Life, Pantheon Ventures, SOPAREXO, Standard Life and Tedcastle Holdings. General partners Frank Reihill & Co and The Chart Group invested in excess of IRGBP 6 million Overall, domestic capital accounts for 25% of the fund, US monies for 29%, Continental European sources for 26% and UK capital for 20%.

The Hibernia Fund, which targets larger development capital transactions, MBOs, acquisitions, privatisations and recapitalisations, will invest equity tranches of IRGBP 1 million to IRGBP 12 million; co-investment from participants in the vehicle boosts the Hibernia Fund’s capacity to a maximum IRGBP 50 million for a single transaction. Its first deal, completed in April, was the $17.5 million (ecu 15.9 million) MBO of Betatherm, a multinational manufacturer of temperature sensors; the group’s principal operations are in Galway and County Mayo.

Frank Reihill & Co, the private investment company of Shane Reihill, joint chief executive of Tedcastle Holdings, and his family, also recently formed an IRGBP 18 million vehicle, Trinity Venture Fund, in partnership with AIB and Forbairt.

Trinity Venture Fund is managed by John Tracey, formerly of ICC, and has co-investment rights with the Campus Fund. Shane Reihill, chairman of both Hibernia and Trinity, said the funds “provide a full equity service to Irish companies to assist them in all stages of their growth”.

Hibernia expects to launch a second development capital/buyout fund within two to three years.