The German asset management group MPC Capital has launched its fifth fund-of-funds, MPC Global Equity V. Market conditions permitting, MPC Capital hopes to raise €50 million from high net worth individuals by the end of 2003. Investors committing a minimum of €20,000 will be drawn from Germany, Switzerland and Austria.
Global Vision Private Equity Partners will manage the new fund. The firm launched the programme together with MPC in 1999 and manages the four previous MPC Global Equity funds, which total over €250 million, making it Germany’s largest private equity program in the retail sector. Global Vision has ten investment professionals based in Frankfurt, Hamburg and Munich. It has invested in 29 funds world-wide, including those managed by 3i, Bridgepoint Capital, the Carlyle Group, Credit Suisse First Boston, Doughty Hanson, Electra Partners Europe and Thomas H. Lee. Global Vision also manages investments for institutional investors.
MPC Global Equity V aims to participate in eight to 12 funds, diversified by stage and geography but weighted towards buyouts. Of the total raised up to 15 per cent is available for opportunistic direct co-investments. This represents a slight change in strategy from previous funds, which committed up to 20 per cent to direct investments, often in lead situations rather than as a co-investor. A number of target funds for investment have already been identified: Carlyle/Riverstone Global Energy and Power Fund II, DBAG Fund IV, Doughty Hanson & Co. IV, Forward Ventures V and Merlin Biosciences III. The new fund is targeting sectors such as telecoms, IT, automation, materials and life sciences and will invest in both early and late stage financings.
Global Vision has developed and published its own method of analysing international private equity markets, the Global Vision Private Equity Clock. By studying macro and micro economic trends Global Vision has plotted the position in the cycle of various sectors of the market. According to the results of the October analysis the private equity market is currently in the selective investment phase, marked by consolidation, waning capital sources and pessimistic market sentiment.