HgCapital has closed its latest private equity fund, HgCapital 5, its second fund as an independent partnership. The £950m (€1.4bn) fund will invest in the European middle market through dedicated sector teams and offices in London, Frankfurt and Amsterdam.
The fund, which was formally launched in late October, exceeded its £750m target with an £850m closing in mid-January. Having agreed a £950m maximum fund size with investors, the remaining £100m was allocated in the second and final closing.
Limited partners in its latest fund include; Gartmore, Goldman Sachs, Harvard Management, Ilmarinen, LGT, Metlife, Morley, Pantheon, Rolls Royce, Standard Life and Texas Teachers. In total, approximately 50 institutional and private investors worldwide support HgCapital 5.
HgCapital was founded in 2000, as a successor to Mercury Private Equity and in recent years has led a number of successful investments including Castlebeck Group, Elite, FTE Automotive, PII Group, Paddy Power, Raymarine and Xyratex.
Credit Suisse acted as sole placement agent and SJ Berwin, together with Ropes & Gray, acted as legal advisors.