Waterland doubles up for Fund IV

Waterland Private Equity, a Dutch mid-market firm, has closed its fourth buyout fund, Waterland Private Equity Fund IV, with commitments of €800m. The fund reached its hard cap after just three months of marketing and was significantly oversubscribed with interest from both new and existing investors, according to the firm.

MVision Private Equity Advisers acted as global placement agent for the fundraising, for which Loyens & Loeff and Ropes & Gray acted as legal counsel.

Fund IV was a step up from its predecessor, which raised €400m in 2006, and was also double the size of Waterland’s second fund, which closed in 2004. Despite the increase, Waterland said that it would stick with its current mid-market strategy.

WPEF IV will make control investments in medium-sized companies in Belgium, Germany, Luxembourg and the Netherlands, focusing on buy-and-build strategies for companies with revenues between €10m and €150m.

Waterland said that it would continue its focus on outsourcing and efficiency, ageing population, leisure and luxury and sustainability businesses, where deal flow continues to be strong.

Commitments for Fund IV were secured from more than 30 investors, about 30% of which came from its fund focus areas, 35% from the rest of Europe and 30% from the US. In terms of diversification, some 30% of commitments came from public and corporate pension funds, 10% from endowments and family offices, 10% from financial institutions and the remaining 50% from funds of funds. New investors included pension funds and foundations in the US.

In April, Waterland sold its investment in German arcade operator Löwen Play, a 2006 investment, for a reported €300m. Other European investments include Health City International, a fitness group in the Benelux region; Senior Living Group, a Belgian nursing homes business; and Windrose, a German luxury travel company.