Standard Life Investments European Strategic Partners II (ESPII), its latest private equity fund of funds, has raised over Euros 1 billion.
ESP II was 26% larger than its predecessor fund, European Strategic Partners, and exceeded target by Euros 90 million
“I am delighted to announce the final close of ESP II, bringing the total size of the fund to 1.09bn euros,” says Jonny Maxwell, Chief Executive, Standard Life Investments (Private Equity)Limited. “Despite the challenging fund raising environment we saw strong interest in the product from all parts of the world. Commitments were received from North American, European, Middle Eastern, Asian and UK clients, further broadening our client base. As a result of closing ESP II, our private equity funds under management now stand at 2.4bn euros (1.7bn), an increase of 37% during the year. With initial fund investments in Barclays, Permira, IPEF, Graphite, Charterhouse, CapVis and Altor, ESP II has gained early exposure to the Scandinavian, Swiss and Italian markets, the smaller end of the UK mid-market buyout sector and the larger Western European buy-out arena. Construction of the co-investment portfolio is also progressing well. We anticipate making further commitments – both in terms of fund investment and co-investment opportunities – during 2004. We have successfully closed our fund and exceeded our target. This has been achieved during an extremely difficult environment when a number of our competitors have closed down or been acquired having failed or struggled badly in their fundraising. Our deep and experienced team, a strong track record and a focused investment approach are being increasingly valued by our growing number of clients.”
A total of Euros 850 million will be invested in private equity funds and Euros 240 million is available for co-investments. Over Euros 200 million has already been committed to private equity funds on behalf of ESP II, including the Barclays Private Equity European Fund, Charterhouse Capital Partners VII (‘Charterhouse’), Graphite Capital VI (‘Graphite’), the Italian Private Equity Fund IV (‘IPEF’), CapVis II, Altor 2003 and Permira Europe III (‘Permira’).
On the co-investments side, ESP II has invested a total of Euros 40 million. First, ESP II made an investment of Euros 10 million in ONV Topco NV (‘Ontex’), a co-investment with Candover. Ontex is the European leader in the market for retailer branded hygiene products. ESP II then invested Euros 15 million in Danske Traelast, a co-investment with CVC. Danske Traelast is the leading builders merchant and do-it-yourself retailer in the Nordic region. Finally, during January 2004, ESP II invested Euros 15 million in Debenhams, a co-investment with CVC. Debenhams is one of the leading retailers in the UK.