MCH Private Equity is in the process of finalising details to start the fund raising process of its second fund, which has set a target of EURO200 million. French bank Natexis and Quilvest, a French financial holding company, both cornerstone investors in MCH’s first fund are also committing to the second. Their combined investment will amount to between EURO50 million and EURO70 million and MCH hopes to raise another EURO130 million from third party investors.
“The million dollar question is how long will it take?,” says Dario Degreiff of MCH’s investor relations. The firm has set a time-scale of a year. “We are optimistic about opportunities in Spain and Portugal, but it is not the best time for fund raising.” It is a vicious circle he says as it is tough for fund raising, but equally a good time to be making investments and so the firm needs to raise another fund.
The first fund raised EURO100 million in 1998 and has invested EURO65 million so far in 14 transactions, but has yet to witness any realisations.
The second fund will have the same focus on expansion capital and buyouts, but the deals will be slightly larger. Degrieff says the fund hopes to make around 10 investments with an average size of between EURO10 million and EURO20 million. “Having gained enough experience from our first fund, we are now well-prepared to target larger investments with our new fund.”