Electra Partners today announces that it has extended its relationship with existing German investment partner, Steadfast Capital GmbH ("Steadfast"), by investing €26 million in a secondary investment in Steadfast's second fund ("Fund II").
Fund II is fully invested and comprised of five investments the largest of which are: FEP (automotive connectors); Kautex (specialist manufacturing equipment); and Falk & Ross (promotional clothing distributor). Electra Partners is looking to repeat the success it has had with the €36 million secondary investment it made in Steadfast's first fund in 2008.At the time the fund comprised of 13 investments, the largest of which, MPS, was successfully sold in August 2010 netting proceeds of £34 million for Electra; a return of 1.9x original cost and an IRR of 46% in under two years.
Secondly, Electra Partners announces that it has made a cornerstone commitment to Steadfast's third fund as part of its first close. Steadfast is targeting a final close of over €200 million.
Steadfast invests in medium-sized businesses in German-speaking markets across a broad range of business types and sectors and specialises in management buyouts of firms with an enterprise value of up to €150 million.
Electra Partners has a strategy of building successful partnerships with high quality managers in the European mid-market buyout sector, enabling it to benefit from their local knowledge and regional expertise. As well as Steadfast, Electra Partners has investment partners in France with TCR Capital, in Italy with Sinergo SGR and in Spain with N+1.
Charles Elkington, Investment Partner at Electra Partners, said: "We are very pleased to be working with the Steadfast team again and look forward to building on our past successes."
This is the third investment Electra Partners has made in the last four months, demonstrating the firm's commitment to actively deploying its £300 million of investment capacity.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC ("Electra").
For further information please contact:
Kate Ruck Keene, M:Communications +44 (0)20 7920 2322
Monique Dumas, Investor Relations Partner, Electra Partners +44 (0)20 7306 3911
Note to Editors:
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years experience in the mid-market buyout sector. As at 31 March 2011, the firm had funds under management of over £1.2 billion and investment capacity of over £300 million on behalf of Electra Private Equity PLC and other clients. The firm's flexible investment approach allows it to invest across a broad range of sectors and financial instruments including equity, senior equity, convertibles and mezzanine debt. Concentrating principally on Western Europe, and with the majority of investments expected to be made in the United Kingdom, Electra Partners seeks to invest in the region of £20-75million per transaction.
The firm's major client is Electra Private Equity PLC, a private equity investment trust which has been listed on the London Stock Exchange for over 30 years. The firm also manages Electra Partners Club 2007, a fund raised in 2008 for the sole purpose of investing alongside Electra in control investment situations.
For further information please visit: www.electrapartners.com
Electra Partners LLP is authorised and regulated by the Financial Services Authority
About Electra Private Equity PLC
Electra Private Equity PLC is an investment trust listed on the London Stock Exchange since 1976 and has achieved investment returns substantially in excess of the FTSE All-Share Index. Electra's objective is to achieve a rate of return on equity of between 10-15% per annum over the long-term by investing in a portfolio of private equity assets. Electra, with its flexible investment approach, has a strong market position and provides shareholders with a direct and liquid access to private equity.
For further information please visit www.electraequity.com