European private-equity firm Cinven LLP said it raised 5.3 billion euros ($7.1 billion) for a fifth fund, 300 million euros more than its original target.
Cinven, the largest buyout firm dedicated solely to investing in Europe, began fundraising for the Fifth Cinven Fund in 2011, holding an initial close, the point at which the manager can begin to invest the capital, of 3 billion euros in March 2012, the London-based firm said in a statement today.
Cinven’s ability to exceed its target comes amid a difficult fundraising environment for private equity. Apax Partners LLP and Permira Advisers LLP, both based in London, are set to complete fundraising for funds smaller than their predecessors this year, while the average time spent marketing is now 18 months, up from 14 1/2 months in 2008, according to data provider Preqin Ltd.
“The final closing of our Fifth Fund reflects the confidence our investors have in Cinven’s ability to capitalize on our sector insights and invest this fund in European-centric businesses” Alexandra Hess, Cinven’s head of investor relations, said in the statement.
Cinven sold shares in U.K annuity provider Partnership Assurance Group Plc in an initial public offering last week on the London Stock Exchange. The deal valued the business at 1.5 billion pounds ($2.4 billion), giving Cinven a potential seven times return on its original investment.
Investments in the new fund include Prezioso, a French-based chemicals business, and pharmaceutical companies Mercury Pharma Group Ltd. and Amdipharm Plc, both based in the U.K., Cinven said in the statement.
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