With this new fund the team is aiming to strengthen its positioning in the segment and will continue to invest in both minority and majority shareholdings in expanding companies with turnover of between €10m and €100m. The investment tickets will range from €4m to €10m during the first rounds and up to €16m in the event of reinvestment.
The investment strategy is based on participation in transactions structured to strengthen equity, reclassify securities or enable buyouts of growing, profitable companies. Already implemented with Cabestan Capital, it has led to the creation of a portfolio of 18 companies, two-thirds of which have developed via external growth with 26 build-ups completed to date at average annual growth in turnover of 18%.
Commenced in March and with a target size of €150m, fundraising concluded in late July via a single closing. The team has received investment intentions totalling over €200m and has set a voluntary limit in order to maintain the maximum size of the fund in order to avoid having to change market segment. 88% of the funds were raised from institutional investors, with the balance coming from private individuals and family offices. Nearly all of the investors in the previous fund have renewed their confidence in the team with higher tickets. Edmond de Rothschild France is sponsoring the fund to the tune of 5%.
The first half of 2016 for the team was notably marked by the completion of 3 investments (Snadec, Travelsoft and Ipside) enabling Cabestan Capital to be fully invested, by the signing of three build-ups including the takeover of Havas Voyage by Marietton, and by a new liquidity event with a recap on Europnet. Furthermore, two disposals are planned to take place over the coming six months.
Cabestan Capital 2 has already made its first investment at the time of closing with an investment in Octime in July 2016 and is planning a second investment by October.
To support the growth of the assets under Cabestan management, which have reached 425 million euros, the team will expand with two new recruits, bringing the number of dedicated investors to nine.