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Acanthus: Clear European mid-market leader
01 Sep 2010

Acanthus has completed 5 closings for its mid-market clients in the last 18 months despite the most challenging fundraising environment for the private equity industry worldwide.

This achievement makes us the clear European mid-market leader both in terms of amounts raised and of number of funds raised.

For further details, please click here.

2010 LP-GP Survey
01 Jul 2010

We are pleased to release Acanthus’ 2010 LP-GP survey, which generated 136 responses. Participants were evenly split with 62 LPs and 74 GPs from all major European countries and the US completing the survey.

The information gathered is relevant and allows us to compare and contrast trends, year on year, to gauge the LP-GP alignment. Among the key points worth highlighting:

  • LPs and GPs continue to have communication difficulties, strongly divergent views on terms and disagree on whether reporting standards have improved


  • The survey notes a significant disparity between LPs’ expectations and GPs’ actual communications on underperforming investments, team changes and investment strategy


  • Terms and conditions remain another area of disagreement, with divergent views, in particular, regarding fee structures and investor protection clauses


  • For GPs, the most notable concern seemed to be whether LPs will remain committed to the asset class due to the liquidity issues they are facing

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    To download the 2010 LP-GP Survey, please click here.

    Final closing of Polaris Private Equity III at €365 million
    02 Jun 2010
    Acanthus Advisers is pleased to inform that Polaris Private Equity reached a very successful final closing of its third private equity fund at €365 million, breaking the €350 million target. This achievement is particularly relevant because:

    - The fundraising was launched in the autumn of 2008 on the eve of the Lehman crash

    - The number of investors has more than doubled and includes prestigious names from Denmark, Finland, France, Netherlands, Switzerland and the UK

    - International investors now account for nearly 40% of the fund, against a purely Danish investor base in Fund II.

    This success is an endorsement of Polaris’s regional buy-and-build strategy focused on small and medium sized businesses based in Denmark and Sweden.

    Polaris’s previous funds are Polaris Fund I (€188 million, vintage 1999, now fully invested and divested) and Polaris Fund II (€270 million, 2005 vintage, fully invested). 

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    2010 European Mid-Market Review
    22 Mar 2010

    Acanthus Advisers are pleased to release our latest annual review of the European Mid-Market: the 2010 European Mid-Market Fundraising Revew. It is based on our ongoing proprietary research into the European mid-market, covering private equity funds between €100 million and €1 billion.

    Here are some of the key messages:

    As expected, 2009 was relatively subdued both in terms of deal activity and fundraising with a stronger second half of the year. Despite the slowdown and in the toughest of fundraising conditions, a creditable €7.9 billion was raised by 41 European mid-market funds.

    We saw longer fundraising periods reflecting the fundamental change in fundraising conditions for both General Partners and Limited Partners such as fund of funds. In 2009, LPs continued to experience serious liquidity issues as they lacked distributions from their investee funds and their existing commitments remain substantially uncalled. Despite the challenges of fundraising and based on our recent performance analysis, mid-market funds have demonstrated their ability to deliver superior returns to investors compared to large and mega funds (funds above €1 billion).

    Expectations for fundraising in 2010 remain low. The key issue continues to be liquidity: distributions are likely to lag behind the pickup in deal activity. This large capital overhang needs to be worked through to see a significant expansion in fundraising activity.

    Private equity investors are now screening more closely for superior, operationally driven returns and differentiated strategies by region. As a result, commitment decisions involve more detailed due diligence processes and extensive benchmarking, assessing, inter alia, value creation drivers, risk management and LP/GP alignment of interests.

    You will find an electronic version of this year’s mid-market review by clicking on the link below.

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    European Private Equity performance: encouraging results for mid-market investors
    01 Mar 2010

    In January 2010, Acanthus compiled and analysed performance data for European private equity buyout funds raised between 2004 and 2009. The results are encouraging for mid-market investors, underlining the strong fundamentals that underpin this segment of the private equity market.

    Some of the key findings

    Mid-market buyout funds raised between 2004 and 2009 outperformed funds larger than €1bn and have generated, overall, positive gains despite the downturn. Funds that raised more than €1bn in this period posted a loss of more than €15bn from the €84bn they had invested - 35 of these 43 funds lost €23bn on €62bn which translates to -38%

    Mid-market funds also returned proportionately more cash to investors, having returned €14bn in cash of the €46.7bn called down while funds of more than €1bn had returned only €18bn

    Looking forward, funds worth less than €1bn have €57bn of dry powder in the funds raised, while larger funds have a further €80bn of uncommitted capital which represents a major overhang for fund raising in the mid-market.

    We believe that the data conclusively contradicts the perceived wisdom that mid-market funds are more volatile than larger funds. Overall, mid-market funds have made a positive return with lower losses and higher gains.

    For further details, you will find the result of our research in the attached file.
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    First Closing of Finatem III at €120 million
    20 Jan 2010

    Acanthus Advisers are delighted to announce that, despite the turbulent and challenging fundraising environment, Finatem III held a first close in December 2009 at €120 million, against a target of €150 million.This was our third fund closing in 2009 in the European mid-market.  Strong interest came from existing and well regarded new institutional investors, with 60% of the fund being subscribed from international investors at first close. more


    The Acanthus team is delighted to announce the details of its new office.
    22 Sep 2009

    First closing of Polaris Private Equity III at €275 million
    21 Apr 2009
    Polaris launching third private equity fund
    • Polaris Private Equity III will have commitments of more than EUR 275m at first closing
    • A significant number of new, international investors joining Polaris’ existing group of investors
    • Investment strategy unchanged with focus on Sweden and Denmark

    Polaris Private Equity (“Polaris”) announces the first closing of a new private equity fund (“Fund III”) with initial commitments of more than EUR 275m that will invest in small and medium-sized industrial and service sector businesses based in Denmark and Sweden.

    The commitments for Polaris Private Equity III are being provided by the existing group of investors, including A.P. Moller Maersk, Danske Bank and ATP Private Equity Partners. In addition, a number of new Danish investors are backing the new fund, including Salling Fonden, FIH, Primo Holding and C.L. Davids Fond og Samling and a number of international investors including Pohjola Private Equity Funds (Finland), Alliance Trust Equity Partners (Scotland), the private equity arm of Alliance Trust PLC, a FTSE-100 company and the largest listed investment trust in the UK by market capitalisation, ACG Private Equity (France), Parvilla (France) and Euro Private Equity (Switzerland).

    “The strong support for our new fund from both new and existing investors is testament to Polaris and our entire team for the investment strategy we have pursued and the results we have achieved with Fund I and Fund II. It shows confidence in our business model – even during the current quite challenging times,” says Erik G. Hansen, chairman of Polaris Management. more

    First closing of NextStage Champion Small Cap II at €61 million
    30 Jan 2009
    NextStage, the leading independent French growth equity firm, announces the successful first closing of Champion Small Cap II at €61 million, over half the size of the fund’s target of €120 million. The first closing has been achieved in less than six months from launch and despite a deteriorating fundraising environment. Interest from both existing and new investors has been strong. Commitments have come from highly regarded French institutional investors and family offices, including Groupe Artémis, the financial holding of Francois Pinault. Since 2002, NextStage has focused on backing exceptional entrepreneurs to create global niche market leaders. NextStage has developed a unique sourcing network allowing them to identify growing companies operating in niche markets and with the potential to become leaders in their markets via geographical expansion, buy and build and integration of innovation. With little or no leverage, NextStage typically acquires controlling positions in companies with enterprise values below €30 million where the founding entrepreneur holds a significant stake.NextStage has invested in, among others, the following companies: Alyotech, Nessink, Gruau, First STPI, Aasset and Alpiski. Acanthus Advisers is acting as financial adviser and placement agent to NextStage. Ashurst is acting as legal and tax adviser to NextStage. more

    Acanthus releases its fourth annual survey of LP-GP relations
    01 Oct 2008
    Acanthus has published its fourth annual survey of LP-GP relations covering responses from 274 institutional LPs and GPs around the world. This is the most successful yet, raising nearly€3,000 for the European Venture Philantrophy Association (www.evpa.eu.com).The information gathered has been invaluable in gauging theLP-GP alignment and has raised several key points:
  • Two thirds of LPs and GPs felt relations could be significantly improved
  • LPs increasingly question the fairness of terms and conditions, particularly as the balance of power is now shifting back towards the limited partners
  • Both sides continue to overestimate the quality of their communications
  • The credit crunch and the deteriorating economic landscape are putting more strain on the relations
  • There was evidence of more friction between LPs and GPs with funds larger than €1bn

    • The full report is available here:
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    Egeria hits hard cap at €500 million with third fund
    16 Jul 2008

    Egeria, the leading independent Dutch mid-market buyout firm, has raised its third fund (Egeria III) at its hard cap of €500 million in its first closing. Interest from both existing and new investors was strong and the new fund was considerably oversubscribed. Commitments came from highly regarded Dutch and international institutions and family offices including investors from North America and Europe.

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    Successful close on €270m for J Hirsch's fourth fund.
    01 May 2008
    Acanthus acted as adviser and placement agent for the Italian mid market private equity group.

    Final close at £235m for ISIS Equity Partners' fourth fund
    15 Nov 2007

    ISIS Equity Partners has held a final closing of its fourth fund,ISIS IV LLP on £235m, well above the original target of £200m. Commitments have been made by a number of highly regarded institutional investors and the ISIS team have also committed a further 1.5%, taking the final fund total to £238.5m.

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    First and final close at €200 million for I2 Capital Partners
    26 Jul 2007
    I2 Capital, a leading investment firm in Italy, today announces the final close of I2 Capital Partners Fund at €200 million against a target of €180 million. Commitments have been made by a variety of highly regarded investors from Europe and North America including pension funds, fund of funds and family offices. more

    Krokus announces final close for Nova Polonia Natexis II Private Equity Fund
    20 Jun 2007
    Krokus Private Equity today announces the final close of its Nova Polonia Natexis II Private Equity Fund at €100 million against a target of €75 million. Commitments have been made by a variety of international investors, including Natixis Private Equity, the European Bank for Reconstruction and Development, InvestKredit, Suomi Mutual Life Assurance Company and Amanda Capital. more

    Krokus Private Equity announces first close for Nova Polonia Natexis II Private Equity Fund
    23 Nov 2006
    Krokus Private Equity todayannounced the first close of its latest fund, Nova Polonia Natexis II Private Equity Fund at €52 million against a target of €75 million. Commitments have been made by Natexis Private Equity, the European Bank for Reconstruction and Development, InvestKredit and one other investor. more