Advent International, one of the world's most global private equity firms with buyout offices in 15 countries, today announced the final close of its sixth global buyout fund at the hard cap of $10.4 billion (euro 6.6 billion).
The fund, GPE VI, is the largest mid-market buyout fund ever raised, the ninth-largest buyout fund overall(1) and Advent's largest to date. Like its predecessor, GPE V, which closed at $3.3 billion in 2005, the new fund will continue Advent's proven strategy of investing in mid-market to upper-mid-market companies primarily in Europe and North America. Focusing on businesses with enterprise values of $300 million to $1.5 billion, with the occasional larger transaction, the fund is expected to make 30 to 35 investments.
GPE VI exceeded its original target capitalization of $7.8 billion by over 30% and was significantly oversubscribed, with more than $15 billion of interest from investors. Advent's total capital raised since inception now increases to more than $23 billion, solidifying its position as the leading global mid-market buyout firm.
GPE VI will be deployed by a team of 69 investment professionals in Western Europe and North America, with support from nearly 50 other Advent deal personnel in Central and Eastern Europe, Latin America and Japan. Combined, Advent's global team is the largest dedicated to middle-market buyouts.
The fund will concentrate on three core types of investments that capitalize on Advent's resources and experience: international buyouts, strategic restructuring opportunities and growth buyouts. As with previous funds, the GPE team will seek to drive profit growth in portfolio companies through operational improvements, strategic repositioning and market expansion, both domestically and internationally. Target sectors remain business and financial services; retail, consumer and leisure; healthcare; technology, media and telecoms; and industrial.
INFO SOURCES
Advent International
FIRMS
Founded in 1984, Advent International is the leading global mid-market buyout firm, with buyout offices in 15 countries on four continents. A driving force in international private equity for more than two decades, Advent has built an unparalleled global platform of over 115 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, strategic restructuring opportunities and growth buyouts in five core sectors, working actively with management teams to drive revenue and profit growth in portfolio companies. Since inception, Advent has raised over $23 billion in private equity capital and completed more than 200 buyout and private equity transactions valued at over $36 billion in 35 countries.
PEOPLE
Bruce Barclay, the Advent Managing Director who led the fund raising
David Mussafer, Managing Partner of Advent's North American buyout group and a member of the firm's Executive Committee
INVESTORS INCLUDE
A total of 160 investors participated in GPE VI. The fund received strong support from Advent's existing investors, who committed roughly two-thirds of the total capital. These institutions were joined by new investors to reach the $10.4 billion hard cap. Geographically, 42% of the capital was raised from North American investors, with 41% coming from Europe, 11% from Asia Pacific and 6% from the Middle East.
Eight of the largest investors by committed capital are Canada Pension Plan Investment Board, GIC Special Investments, AlpInvest Partners, Pantheon, California State Teachers' Retirement System, SL Capital Partners LLP (formerly Standard Life Investments Private Equity Ltd), Universities Superannuation Scheme and Partners Group.
NOTE
Dollar-Euro Conversions
Euro equivalents for U.S. dollar figures included in the release. Based on an exchange rate of euro 0.6376 per dollar as of April 2, 2008, except GPE V capitalization, which is based on April 2005 exchange rate.
-- GPE V closed at euro 2.5 billion in 2005.
-- GPE VI will focus on businesses with enterprise values of euro 200
million to euro 1 billion, with the occasional larger transaction.
-- GPE VI exceeded its original target capitalization of euro 5 billion by
over 30% and was significantly oversubscribed, with more than euro 10
billion of interest from investors.
Supporting Material
