(Press Release) Global private equity firm Advent International exceeded its target and fund-raised US$13b for its new fund GPE VIII, which will invest primarily in Europe and North America and selectively in other regions such as Asia and Latin America.
- Firm’s eighth global fund exceeds $12 billion target and reaches $13 billion hard cap in six months
- Fund will pursue Advent’s sector-focused strategy and operational approach to create value in companies through revenue and earnings growth
Advent International, one of the largest and most experienced global private equity investors, today announced that it has completed fundraising for Advent International GPE VIII Limited Partnership (“GPE VIII” or the “Fund”), reaching its hard cap of $13 billion (€12 billion) after six months in the market. Advent’s previous global fund, GPE VII, closed on $10.8 billion (€8.5 billion) in 2012.
GPE (Global Private Equity) VIII will pursue the same strategy as its predecessor funds, investing in buyouts, re-capitalizations and growth equity transactions, primarily in Europe and North America and selectively in other regions such as Asia and Latin America. The Fund will focus on five industry sectors in which Advent has significant experience and knowledge: (1) business and financial services; (2) healthcare; (3) industrial; (4) retail, consumer and leisure; and (5) technology, media and telecom.
Across its target sectors and regions, Advent will seek to invest in well-positioned companies with the potential for further operational improvement and partner with management teams to create value through revenue and earnings growth.
“We are pleased with the strong support we received from both existing and new investors,” said David Mussafer, a Managing Partner at Advent International in Boston. Mr. Mussafer is one of 14 Managing Partners at Advent. “We believe that our success is a result of our long-established sector focus, global footprint and network, private partnership model, and the significant operational resources and expertise we apply to our investments. This solid foundation positions us well to continue to find and build successful businesses around the world.”
GPE VIII will be invested by a team of more than 130 investment professionals across Europe, North America and Asia. These individuals can leverage the expertise and networks of additional professionals from Advent’s Latin American Private Equity Fund (LAPEF) program, which focuses on investments throughout Latin America.
“Our global team is one of the largest and most experienced in the private equity industry,” said Ralf Huep, a Managing Partner at Advent International in Frankfurt. “This platform allows us to generate a broad set of opportunities, invest selectively in the most compelling businesses and drive operational improvement and growth to create value.”
“GPE VIII received commitments from a diverse base of institutional investors across the globe,” said Johanna Barr, a Managing Director and Global Co-Head of Limited Partner Services at Advent International in London. “Approximately 90% of the committed capital came from limited partners in Advent’s prior funds, with the remaining commitments provided by a select number of new investors.”
“We are fortunate to have a large, loyal group of investors and greatly appreciate their support in making this a successful fundraising,” said Robert Weaver, a Managing Director and Global Co-Head of Limited Partner Services at Advent International in New York. “We will work to earn their continued commitment by maintaining our focus on value creation.”
Advent’s GPE program has established a strong track record of investments and exits over seven generations of funds and several economic and private equity cycles. Since 1990, the program has invested in 228 private equity transactions in 29 countries and fully or substantially realized 190 of those investments.
Recent investments by the GPE program include Ammeraal Beltech, Corialis, Hypo Group Alpe Adria and Istituto Centrale delle Banche Popolari Italiane (ICBPI) in Europe; Distribution International, Genoa and Noosa in North America; and Crompton Greaves Consumer Electricals, The Learning Lab and QuEST Global Services in Asia.
Recent IPOs and sales of companies in the GPE program include Casa Reha, Douglas, Equiniti, GFKL Financial Services, Priory Group and Worldpay in Europe; Bojangles’, Party City and TransUnion in North America; and CARE Hospitals in Asia.
KEY COMPETITIVE ADVANTAGES
Over its long history of international investing, Advent has developed a number of core capabilities which it believes provide significant competitive advantages throughout the investment life cycle:
Long-established sector focus – Advent has been investing in each of its five target sectors for 25 years and has made an average of over 60 investments per sector worldwide. This expertise enables the firm to identify attractive investment opportunities in higher-growth sub-sectors, develop and implement effective value creation plans and position companies favorably for exit.
Global footprint and network – With over 170 investment professionals in 10 countries on four continents, Advent brings to its investments both a broad global perspective and deep knowledge of local markets. This platform allows the firm to help businesses grow through international expansion, cross-border acquisitions and other initiatives.
Private partnership model – Advent remains a traditional private partnership owned and operated by 45 partners and governed by a group of 14 Managing Partners. The firm believes its ownership structure and economic incentives ensure that it is closely aligned with the interests of its investors.
Significant operational resources and expertise – To complement its deal team’s capabilities, Advent draws on additional operational and sub-sector expertise, including an in-house Portfolio Support Group and over 70 highly experienced external Operating Partners. These Operating Partners, typically former CEOs, work alongside Advent’s sector teams and management to support the development of companies through their industry knowledge, operational know-how, leadership experience and contact networks.
In addition to the GPE program, Advent is currently investing its sixth Latin American private equity fund, LAPEF VI. Capitalized at $2.1 billion, the 2015-vintage fund focuses on buyouts and growth equity investments in Brazil, Colombia, Mexico, Peru, Chile and other countries in the region.
This press release is not an offer or solicitation of an offer, or an invitation or inducement, to invest in any Advent International fund. No person may invest in any Advent International fund except in accordance with and subject to the terms of the applicable fund documentation and applicable law.