Wayzata spinout Hoplon targets second fund in challenging market

Hoplon Investment Partners, launched by two former Wayzata Investment Partners executives, is in the market with its second fund targeting in the range of €200 million to €300 million, a person with knowledge of the process told Buyouts.

The firm is one of numerous emerging managers testing the challenging fundraising markets that are exceedingly unfriendly to newcomers.

Emerging manager fundraising is down in the tough market, with first-time funds globally raising around $25 billion last year, compared to $47.6 billion in 2022, according to Buyouts data.

“LPs in this environment are being very judicious,” says one LP consultant who focuses on emerging firms.

Hoplon was formed in 2019 by Luca Severo and Sven Hansen to invest in special situations across Europe. Severo worked as a principal at Wayzata starting in 2011, and Hansen worked there since 2010.

Hoplon’s first fund, which closed just under €100 million in 2021, had two anchor investors, according to the person with knowledge of the firm. The fund, which is fully deployed, was generating a 23 percent IRR, the person said.

The firm filed a Form D fundraising document for Hoplon Opportunities Fund II in September 2023. Fund II held a first close recently on €70 million, the person said.

The fund, which has a three-year investment period and three-year harvest period, is targeting returns of 20 percent net internal rate of return and a 2x net multiple, the person said.

Hoplon targets investments in small and mid-sized asset-backed special opportunities in Europe. The firm uses a value-based, credit investment strategy and includes corporate credit, restructurings, real estate and direct lending, according to Hoplon’s website.

Last year, the firm provided debt financing to offline and online gaming operator The Football Pools.

Hoplon is among a group of emerging managers raising in this year’s overall challenging fundraising market. Earlier this month, Coalesce Capital closed its debut fund on more than $900 million, beating its target in under a year.

Other emerging managers in the market include Allied Industrial Partners, Point 41 Capital and Emerald Bridge.

Check out Buyouts’ extensive database of emerging managers, including first-time funds, with funds in the market here.