European F-o-F Closes With €776M

Firm: LODH Private Equity AG

Fund: Euro Choice IV

Target: €600 million

Amount Raised: €776 million

LODH Private Equity AG, a subsidiary of Swiss private bank Lombard Odier Darier Hentsch, has closed its European fund-of-funds Euro Choice IV with €776 million, or about $1 billion.

The firm originally sought to raise €600 million to commit to 20 to 25 country- and region-specific buyout, growth capital and special situation funds in Western and Eastern Europe. The vehicle will not invest in any venture capital or mega-buyout funds, but will instead focus on the lower end of the middle market by pledging to buyout, buy-and-build, turnaround and some growth capital funds. The firm has already committed to seven funds, although Regula Mori, director of marketing & investor relations at LODH Private Equity, declined to name them.

A first close occurred on July 11, 2008, with €300 million and, at that time, a final close was expected by year-end.

Backers represent a variety of European, Middle Eastern and North American institutions, including family offices, public and private pension funds, endowments and foundations. Roughly 40 percent are U.S. based.

Euro Choice III closed in late 2006 with €493 million, exceeding its initial €350 million target. Dutch pension fund Stichting Nedlloyd Pensioenfonds and Dancap Bank were backers.

In June 2004, the firm closed Euro Choice II with $268 million, exceeding its $250 million target. Some of Fund II’s U.S. backers were Avaya Corporation’s pension fund, the Ewing Marion Kauffman Foundation, ITT Industries Inc.’s pension fund, and the New York City Police Pension Fund.