BMO Global Asset Management EMEA Private Equity (BMO PE) has completed the first close of Castle Mount with EUR60m in commitments from a range of institutional, wholesale and high net worth individual clients from Germany, the UK and Canada.
Castle Mount LP is a multi-manager co-investment fund, investing in European lower mid-market buyouts with a focus on prime managers. It represents the first opportunity for investors to gain direct exposure to BMO PE’s co-investment activity. The Fund has a number of live deals under consideration for deployment of assets. The investment portfolio will consist of 15 to 25 co-investments in a well-diversified range of private companies led by a group of around 10 lead managers.
BMO PE defines lower mid-market companies as those with enterprise values up to EUR500m. The team favours prime managers, experienced private equity managers operating in recently established private equity firms, due to their high motivation, close alignment of interest with investors and the opportunity for outsized returns.
“As investor demand for European lower mid-market buyouts has increased, along with an extremely strong deal flow, it was important for us to be able to provide access for investors seeking out this type of opportunity. The current political and economic conditions, where there is notable uncertainty globally, makes for challenging fundraising, but it also creates good buying conditions for experienced private equity professionals and their investors,” said Hamish Mair, Director and Head of BMO PE. “Prices of private companies in the European lower mid-market remain attractive and it is our belief that focused and diligent investors should be able to buy and sell well in this broad tier of the market and ultimately make excellent returns for Castle Mount LP investors. We are delighted to reach a first close of this new fund with the support of a number of our existing, as well as some new, investors.”
Further closings are anticipated over the remainder of 2017 with a final close likely to occur in early 2018. The Fund has a capacity of EUR300 million. The Fund targets a return of a net 20 per cent IRR.
BMO PE manages over EUR1 billion across eight funds, invested in over 140 mid-market funds and 21 direct investments.
