ERES III: record fundraising for Edmond de Rothschild’s international minority mid-cap private equity co-investment fund

Press release - 11/14/2016

The Edmond de Rothschild Equity Strategies ("ERES") franchise is pleased to announce the final closing of its new fund, ERES III, at its hard cap of €300 million.

This is the highest amount ever raised by the ERES franchise (its 2011 vintage, ERES II, had raised €217m) and LPs include HNWIs as well as leading financial institutions both in France and internationally (especially Asia).

ERES will continue its strategy of investing as a minority shareholder in support of majority partners in private mid-cap companies (enterprise value between €100m and €2bn), while offering its investors a dynamic geographic diversification, as the fund can be invested up to 50% outside Europe, and opportunistically adapts its investment strategy to focus on the most promising environments at a given moment. ERES has an investment horizon of 4 to 7 years.

ERES III invests between €10m and €45m per transaction alongside its partners – with whom it never competes - and can be involved at several stages of the investment process:

  • Before exclusivity: ERES participates in the due diligence with its partners and commits to the overall total equity;

  • Between exclusivity and closing: ERES can fund up to half of the amount of the transaction until its majority partners syndicate to their own investors. This solution is particularly suited for funds who have to execute a transaction and at the same time syndicate some co-investment to their own investors. ERES provides them with an additional investment capacity and flexibility in the syndication process;

  • During the life of an investment, if a majority shareholder has to re-inject some equity in a portfolio company, partnering with ERES in the transaction allows it to avoid inviting a competitor.

In all cases, during both due diligence and the investment holding period, ERES contributes to the value creation on a case-by-case basis, in particular by giving its partners and portfolio companies access to the Edmond de Rothschild Group’s wide network.

The ten professionals in the ERES team have significant experience in private equity, M&A and strategy. It is headed by Jean-François Félix (HEC, Harvard MBA), former head of Europe for US large cap buy-out fund Vestar Capital, and Jérémie Mélin (HEC, Law). The team and its decision-making process are designed to be highly reactive (a few weeks) and to enable ERES to work seamlessly into a complex and fast execution process.

Disclaimer: ERES III is a professional private equity investment fund (fonds professionnel de capital investissement or FPCI) under French law and a risk capital investment vehicle (société d'investissement en capital à risque or SICAR) under Luxembourg law. This document must not be considered as an offer to sell, an invitation for an offer to buy, or a measure to promote ERES III securities. The principal inherent risks of ERES III are risk of capital losses, liquidity risk, currency risk, emerging market risk, and risk related to diversification. This document is not binding and its contents are for information purposes only.