This latest offering from F&C follows the
Mair said of the new fund: “The European mid-market, which is defined as private companies with enterprise values of between €50 and €500m, is a very broad and inefficient tier of an expanding asset class. There are literally thousands of companies in this size bracket across Europe that could benefit from private equity finance. Through F&C European Capital Partners LP we will access a wide range of opportunities via a number of locally based experts and others who operate on a pan-European basis. We will also be backing several emerging manager groups. We have found that the alignment of interest between private equity managers and investors is especially strong with emerging groups.”
The F&C private equity team will be looking to invest in at least 20 funds, from buyouts to mezzanine, and will allocate 30% for direct investments, mainly in deals led by private equity firms known to F&C.
Mair said: “We have seen a strong pipeline of good quality funds and co-investment opportunities. We expect the fund to be fully committed well within the three-year investment period. It is noticeable that the pricing of private equity deals in the mid-market continues to offer good prospects of excellent long-term returns.”
Incorporated into the new fund is a feeder vehicle which will invest in listed private equity funds, providing investors with immediate exposure to the private equity market. As the underlying fund and co-investment portfolio builds up, the listed portfolio will be gradually sold down. The fund is also able to enhance returns through the selective use of borrowings, with the ability to gear up to 30% of total portfolio value.