Top Swiss Team Reborn As CapVis Equity Partners –

The former SBC Equity Partners team-historically the most active middle-market private equity group in Switzerland-has begun raising its first third-party fund after having attained quasi-independent status as CapVis Equity Partners in the wake of last year’s merger of SBC Warburg and UBS.

The new vehicle, CapVis Equity Fund, will concentrate on middle-market buyouts in Switzerland and Austria but may deploy up to 30% of its capital elsewhere in northern Europe.

CapVis Equity Fund, formally launched in March, held an August first closing on CHFr 196 million ($129.4 million), almost two-thirds of the way to its CHFr 300 million ($198 million) target.

In accordance with its standard practice, UBS is providing 40% of the overall capital for the fund.

Five third-party investors also signed on for the first close. Yves Dudli, a partner at the new advisory company, declined to name investors that participated in the first closing. He did say, however, that the group includes one of the largest U.S. funds-of-funds, a leading Dutch pension fund and three Swiss investors, of which two are insurance-related pension funds and one is a fund-of-funds.

CapVis has concentrated on marketing the fund in the U.S., the U.K. and Switzerland, and will maintain this focus going forward. Dudli said the group also has approached a number of Austrian investors, although interest in a private equity fund among banks and pensions in Austria is likely to be low due to regulatory constraints.

The CapVis Equity Partners team, headed by Chief Executive Rudolf Lyner and Partners Bernard Steck, Alexander Krebs, Max Staehelin and Dudli, has invested in more than 20 Swiss and Austrian companies since 1990, leading major buyouts such as SAIA Burgess Electronics, komax, sia Abrasives, Melcher and, most recently, Roulements Miniatures Biens. Several portfolio companies, including Feintool, Phonak, Disetronic, komax and SAIA Burgess Electronics, have been brought public.

This strong track record, in conjunction with an extensive premarketing campaign, enabled CapVis to reach a first closing relatively quickly.

CapVis Equity Partners intends to maintain and develop the group’s historic strength in its core markets, Switzerland and Austria, capitalizing primarily on acquisition opportunities arising from succession issues and corporate divestments.

The new fund will acquire majority stakes and significant minority positions in expansion and replacement capital deals.

UBS, which holds a 40% stake in the management-controlled advisory company, will have a major influence on the general-partner structure, Dudli said, adding that the benefits of CapVis’s semi-captive status include access to UBS Capital’s deal flow and Warburg’s international network.

New Group Observes Strict Borders

Under the terms of its agreement with UBS Capital, CapVis Equity Partners will not lead deals outside its two core markets. Throughout the rest of Europe, and above the fund’s CHFr 10 million to CHFr 50 million investment range, the group will invest jointly with UBS Capital or other private equity houses. UBS Capital, which has CHFr 4 billion available for private equity investment worldwide, is likely to snap up the lion’s share of co-investment opportunities.

In Europe, UBS Capital operates teams covering Scandinavia, Germany, the Benelux markets, Italy and France. Phildrew Ventures became a fully-integrated member of the network last year and, paralleling its arrangement with CapVis, UBS Capital has gained exposure to the U.K. and Irish markets via its commitment to Phildrew’s most recent fund.