Pan-European private equity firm Idinvest Partners has announced an interim close on its latest senior debt vehicle at 205 million euros ($266 million). The fund expects to reach a final close by the end of June 2013.
Idinvest Partners, a leading pan-European private equity firm, today announced an interim closing at €205 million of its new investment vehicle exclusively dedicated to senior debt. The fund, “Idinvest Dette Senior”, aims to surpass €250 million by its final close, expected for the end of June 2013.
The initial investors are mainly major insurance companies. With this new fund, Idinvest Partners raises its profile in corporate finance where it currently has nearly €600 million in assets.
The fund will finance senior acquisition debt incurred by unlisted European companies with solid fundamentals, moderate leverage and a robust business model.
“The main objective of this new fund is to finance SMEs seeking rapid growth,” explained Christophe Bavière, CEO of Idinvest Partners, “and current market conditions for acquisition debt are excellent, both in the primary and the secondary segments.”
The typical investment target is an SME well positioned on the domestic market and having initiated an external growth strategy involving the acquisition of competitors, aiming to expand into international markets – particularly emerging markets. These are winning choices in the current European context of weak economic growth, but in order for these SMEs to become European mid-cap companies, the necessary financial resources must be made available. The fund has already carried out four corporate financing transactions.
Eric Gallerne, who joined Idinvest Partners in 2012, will implement the investment strategy of this fund. He previously managed the acquisition financing activity of Fortis Banque France, before heading up Groupama Private Equity’s mezzanine operations. “This fund responds to structural developments in the senior debt market and is part of our ambition to maintain long-term partnerships with market participants involved in growth financing in Europe,” observed Eric Gallerne. “The selected investment targets offer excellent potential to deliver top-level performance.”