Investindustrial, a private equity firm focused on Souterh Europe, has raised a €100 million annex for its €500 million third fund.
Investindustrial, Southern Europe’s leading private equity firm, has completed the raising of its Build-Up Fund for the €500 million Investindustrial III L.P. (“Fund III”) at the target amount of €100 million. Fund III was raised in 2005 and is the predecessor of the €1 billion Investindustrial IV L.P. The Build-Up Fund was raised in five months. It received strong support from existing investors with only one new investor, a leading European family office, invited to the fund. 41% of the capital came from family offices, 26% from funds-of-funds, 17% from insurance companies and banks, and 16% from public pensions. Investindustrial’s Build-Up Fund is the largest of its kind raised for the European middle market during 2009. The Build-Up Fund’s focus is to make add-on investments in quality buy-and-build platforms of Fund III. The Build-Up Fund provides important additional capital to further develop the Fund III portfolio in a buyer’s market. At the same time, its innovative build-up structure gives participating limited partners the potential to generate additional returns from a familiar portfolio of performing investments. Investindustrial has already identified a number of attractive targets for such investments primarily during the 2009-10 period. Andrea C. Bonomi, Chairman of Investindustrial, said “we are delighted with the support from our high-quality investors, particularly given the challenging market conditions. We are pleased that we are being recognised for our leading position in Southern Europe and industrially-driven approach to building companies.” Investindustrial has been very active in the last month. Already one of Southern Europe’s largest teams, it was joined by another couple of experienced investment professionals. It also announced two of the largest transactions in Italy and Spain during 2009 when it agreed to launch a tender offer for Italian manufacturer of architectural envelopes for buildings Permasteelisa and to acquire control of Spanish theme park operator PortAventura. MVision Private Equity Advisers acted as placing agent and SJ Berwin acted as legal counsel. *** Investindustrial is a leading Southern European investment group which provides industrial solutions and capital to mid-market companies in Southern Europe. Its mission is to actively contribute to the development of the companies in which it invests, by creating growth opportunities and offering global solutions through an entrepreneurial pan-European vision. Investindustrial currently has €2.1 billion of assets under management, including the most recent fund Investindustrial IV raised in February 2008 with €1 billion in total commitments.