Munich-based Orlando Management has announced the final closing of the Special Situations Venture Partners (SSVP) fund at €163 million, exceeding its original target of €125 million. The fund was substantially oversubscribed and had to scale back investors at the final close to stay under the fund’s cap.
SSVP has secured commitments from over 10 institutions and investors worldwide with around 71 per cent from Europe, 24 per cent from the US and five per cent from the rest of the world. Commitments come from prominent investors including pension funds and fund-of-funds and the fund includes leading institutional investors such as Danske Private Equity Partners I, Goldman Sachs Private Equity Group and LGT Capital Partners. Mvision Private Equity Advisors served as financial advisor and exclusive placement agent.
The fund is focusing on the acquisition of German-speaking Mittelstand companies with sales in the range of €50 million and €250 million. A typical investee company will have a healthy, profitable core, but will usually be in a situation of significant under-performance, balance sheet distress or fundamental transition which may include insolvency.
Typical causes of special situations include past unproductive capital expenditure, uncontrolled expansion, unresolved succession problems, gridlock between management, shareholders and banks, or inheritance/estate tax issues. By acting as a hands-on owner and driving change, the fund helps the portfolio companies in realising their earnings potential.