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Lion Capital seeks $2.5 bln for Fund IV

Lion Capital is out marketing for its fourth fund, a source said.

Lion Capital IV LP has a $2.5 billion target on a $3 billion hard cap, the person said.

The private equity firm is not using a placement agent.

Fund IV is bigger than Lion’s third fund, which collected 1.6 billion euros (US$1.7 billion) in 2010. The pool is generating a 17.08 percent IRR and 1.51x multiple, according to data provider Bison.

Lion, which has offices in London and Los Angeles, is a consumer-focused firm that has invested in companies such as Jimmy Choo shoes (was sold to TowerBrook Capital Partners in 2007), Kettle Foods (exited in 2010) and AllSaints, the apparel retailer. Lion has been exiting deals as it prepares to come to market. In December, the firm agreed to sell Bumble Bee Foods to Thai Union Frozen Products in a deal valued at $1.5 billion. Lion Capital was expected to make more than 4.5x its money with the sale, peHUB has reported.

Earlier this week, the firm sold a 49 percent stake in Picard, a French frozen food retailer, to Aryzta. Lion last month sold Ven Geloven, a Netherlands-based frozen food producer, to TowerBrook. The firm also agreed to sell Vaasan Group, a bakery group, to Lantmännen in January.

News of Lion Capital’s fundraise was reported by The Wall Street Journal.

Executives for Lion could not immediately be reached for comment.

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