- Why is this important: Alameda Co., Texas pensions commit to CapVest for first time
- Fund: CapVest Equity Partners IV
- Target: $1 bln
- Amount Raised: N/A
- Placement Agent: Credit Suisse
CapVest, the London private equity firm, has attracted three U.S. pensions to commit to its EU healthcare-focused fund, CapVest Equity Partners IV. Fund IV is targeting $1 billion.
Texas Municipal Retirement System, State of Wisconsin Investment Board and Alameda County Employees’ Retirement Association have made commitments totaling more than $137 million.
The Texas and Wisconsin systems approved commitments in the ballpark of $50 million each in late June, while Alameda County’s board moved to commit $34 million.
This is the first time Alameda County and Texas pensions have committed to a CapVest fund. It is the second such occasion for Wisconsin, which had committed $42 million to CapVest Equity Partners III in 2014.
Across its previous three funds, CapVest reported that 30 percent of its transactions had been in healthcare. These have included Curium, a global producer of nuclear tracers for diagnostic imaging tools, and Mater Private Healthcare, Ireland’s leading specialist private hospital group.
CapVest sold Mater Private to HarbourVest Partners in October 2017 for $500 million.
Recently, CapVest also said it acquired NextPharma, a pharmaceutical contract development and manufacturing organization that employs more than 1,000.
The company is a main player in Europe’s market for product formulations, clinical trials and logistics services.
While CapVest declined to go into detail about its new fund, John Keilthy, a spokesman for the firm, confirmed that “healthcare is an obvious focus, as is food manufacturing and distribution.”
Keilthy also said these are areas where CapVest has “and [will] continue to make investments.”
CapVest Equity Partners IV will work to acquire six to eight platform investments — control and buyout opportunities with middle-market companies — and then, build them out through follow-on acquisitions.
If CapVest’s fundraising target is met, CapVest Equity Partners IV will be more than twice the size of its 2014 predecessor, which raised $467 million.
According to Wisconsin’s Q4 2017 report, Fund III was generating a 2.06x multiple and a 38.7 percent internal rate of return.
CapVest is working with Credit Suisse as placement agent. Credit Suisse declined to comment.
Action Item: Check out CapVest’s Form ADV here: https://bit.ly/2LZK6m2