By Arno Schuetze
FRANKFURT Oct 23 Private equity group IK
Investment Partners has raised 1.4 billion euros ($1.9 billion)
from investors for its latest fund, behind schedule and around
300 million euros short of its initial target.
IK, which started fundraising in December 2011, collected 1
billion euros by the time of a so-called first close in March
2012 - the point at which it can start investing, a person
familiar with the firm said on Wednesday, adding the euro zone
crisis ended its hopes of reaching 1.7 billion soon thereafter.
While some firms like IK, Apax, Permira
and Warburg Pincus have been struggling to meet their
targets, others like Advent and CVC have had to turn
Results in fundraisings often reflect the success or failure
of prior funds, and the development of IK's portfolio companies
has been mixed over the last couple of years.
IK last month sold German sanitary fittings maker Hansa to
Finland-based Oras in a deal that generated a return of 2.7
times its original investment, the source familiar with the
private equity group said.
But in April, IK's Flabeg filed for insolvency, even though
the private equity group had twice supplied fresh money to
stabilize the maker of solar parabolic mirrors and automotive
mirrors. Saudi Arabia's ACWA later bought Flabeg's solar unit
from the administrator.
Last year, IK appointed banks to advise it on a sale or
listing of Attendo, one of the Nordic region's largest
healthcare providers. But no deal materialised.
Also in 2012, the sale of measuring and materials handling
equipment maker Schenck Process failed after IK
deemed offers too low.
IK, which manages more than 7 billion euros and has invested
in over 80 European companies, attracted 16 new investors, the
group said on Wednesday.
The new IK VII Fund has already made three investments,
buying inspection group Veritas Petroleum Services, offshore
energy servicer Ampelmann and survival suits maker Hansen, IK
"We expect to make three to five further investments with an
equity value of at least 60-90 million euros each within the
next twelve months," managing partner Detlef Dinsel told
Reuters, adding IK was also targeting the sale of two to three
companies and recapitalising another two to three firms.