European News – Quadran Attracts German Support –

January saw a s111 million final closing for Quadran Capital Partners I, the maiden fund offering from Quadran Gestion, an independent French private equity house that was formed in 1998.

Quadran Capital Partners is notable as the first French private equity fund to boast a German sponsor, Deutsche Beteiligungs AG (DBAG), which contributed s34.5 million, or 30.9% of the closing total. Under the terms of a strategic agreement, Quadran Gestion and DBAG have a mutually exclusive agreement covering private equity investments in their respective domestic markets. Quadran Capital Partners, which is targeting mid-market buyouts in the e20 million to e200 million transaction value range, is therefore well placed to structure cross-border deals for French and German companies.

Excluding DBAG’s commitment, Quadran Gestion raised the majority of third-party capital from French sources. Domestic investors contributed some 29% of the fund, while Swiss groups committed a further 17%. The balance was drawn from the U.K., 14%, the U.S., 4.5%, and other German investors, 4.6%. Asset management groups dominate the investor line up, accounting for more than 35% of committed capital, followed by insurance companies with 25% and banks with 22%. Quadran drew slightly more than s20 million, or 18% of the fund, from private investors, including the management team.

Quadran’s founders combine well over 30 years’ experience in the French private equity market and include Patrick Jemelen, formerly of Morgan Grenfell, Paris; Frederic Crot, previously with Electra’s Paris operation; and Antoine Roche de La Rigodiere, who moved from Walter Butler Finance.

The new fund, which has no industrial sector preferences, completed its first deal last November, investing alongside NatWest Equity Partners in the secondary buyout of pest control services group Eurogestion.

This April, Quadran will change its name to Quartus Gestion and in conjunction, the new fund will become Quartus Capital Partners I.