Advent nails €2.5bn for global buyouts

The midmarket buyout firm has closed its oversubscribed fifth global private equity fund with commitments from 86 international investors.

Global private equity firm Advent International has held a final close of its fifth private equity fund on €2.5 billion ($3.3 billion), the successor to its 2001 vintage, $1.9 billion vehicle.


Global Private Equity V (GPE V) attracted 86 investors and was heavily oversubscribed, with €4 billion of interest from potential LPs, according to a press release. 46 percent of investors came from North America, 38 percent from Europe and the remaining 16 percent from Asia and the Middle East.


Concerns over sustainability of returns led to a higher focus on “same strategy” issues by investors.

Will Schmidt, managing partner, Advent International

Fundraising began at the end of October 2004, before a first close on December 22nd and an effective close at the end of January, with the process kept open for legals and some final commitments, according to London-based managing director Will Schmidt in an interview with PEO.


Investors in the fund included AlpInvest, CalPERS, Canada Pension Plan Investment Board, GIC Special Investments, Standard Life, State of Michigan Retirement Systems and clients advised by fund of funds managers Pantheon and Partners Group.


Schmidt said that the fund had welcomed “several new investors”, a number of whom were European, reflecting the fact that the majority of the fund would be deployed in Europe and the new vehicle will also be denominated in euros.


In the midst of a busy fundraising spell, Schmidt said that investors had become “more professional” than four years ago, when Advent raised its previous fund. Concerns over sustainability of returns led to a higher focus on “same strategy” issues, said Schmidt.


GPE V will invest primarily in Europe and North America, concentrating on its stated core sectors of: business services; healthcare and lifesciences; industrial, technology, media and telecoms; and retail and consumer. The firm typically invests in businesses with an enterprise value of between €50 million and €500 million.


Also today, the firm announced the sale of poultry science company Aviagen International Group to Erich Wejohann Group for an undisclosed sum. Advent acquired the company from European buyout firm BC Partners in May 2003.


Earlier this month, the firm closed its latest vehicle dedicated to the Central & Eastern Europe (CEE) region on €330 million.


Founded in 1984, Advent International has offices in 13 countries across North America, Europe and Asia. The new fund brings Advent’s total capital under management to $10 billion.