AURELIUS closes new mid-market private equity fund at EUR500m

Pan-European asset manager AURELIUS has closed the AURELIUS European Opportunities IV. The Fund has secured EUR350 million of total commitments from a diverse group of top-tier institutional investors, including US and European university endowments, pension funds, insurance companies and family offices.

AURELIUS’ listed vehicle, AURELIUS Equity Opportunities SE & Co. KGaA (ISIN: DE000A0JK2A8), will – in addition to its established lower mid-market investment program – co-invest up to EUR150 million alongside the Fund creating a total deal-making firepower of EUR 500 million for investments in the European mid-market.

Despite the Fund being significantly oversubscribed, AURELIUS effectively capped the Fund at EUR 350 million in order to maintain investment discipline and preserve its exceptional track record. It is delighted to be entering into a partnership with a select group of high-quality investors who will support the long-term development of the business.

Through the Fund, AURELIUS will continue its proven strategy of investing in corporate carve-outs and operational transformation in the European mid-market. The Fund will target equity tickets of up to 100 million in companies headquartered in Europe. AURELIUS will continue to focus on achieving returns through operational improvements, rather than leverage, with its portfolio companies benefiting from access to AURELIUS’ Operating Taskforce.

This closing marks another important milestone for AURELIUS, providing further sustainable value creation opportunities for its stakeholders. The Fund is the latest development of AURELIUS and will complement its investment activities in the lower mid-market (AURELIUS Equity Opportunities), small-cap buy-out (AURELIUS Growth Investments), credit (AURELIUS Finance Company) and real estate (AURELIUS Real Estate Opportunities).

“Raising a new private equity fund during this pandemic without being able to physically meet investors provided us with a complex challenge. Today we are extremely pleased with the successful closing of AURELIUS European Opportunities IV and the backing we have received from a number of prestigious institutional investors. The pandemic as well as evolving global economic and political fault lines have created a unique market opportunity for complex, operationally intensive transactions. This new fund will enable us to capitalise on these opportunities, and we look forward to delivering superior returns to our investors”, commented Dr Dirk Markus, Founding Partner of AURELIUS. “As a leading pan-European private equity manager and investor in corporate carve-outs, we are the first choice for corporates looking to divest their non-core operations", Dr Markus added.

AURELIUS was advised by Campbell Lutyens (exclusive global placement agent), Linklaters (legal and tax) and KPMG (financial).