European F-o-F To Hold Second Close With About €450M

LODH Private Equity AG, a subsidiary of Lombard Odier Darier Hentsch, a Swiss private bank, plans to holding a second close of European fund-of-funds Euro Choice IV in December with €430 million to €450 million ($550 million to $580 million), according to Regula Mori, director, marketing and investor relations.

The firm seeks to raise €600 million altogether 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 contain any venture capital or mega-buyout funds, noted Mori.

A first close occurred on July 11 with €300 million, and at that time, a final close was expected by year-end, Thomas Frei, managing director, told Buyouts in July. Now, however, the firm anticipates a final close in February 2009.

Backers represent a variety of European, Middle Eastern and North American institutions, such as 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, the New York City Police Pension Fund, the Plymouth County (Mass.) Retirement System and Schlumberger Limited’s corporate pension fund.