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ECM Equity Capital Management closes GEP IV at EUR230m

ECM Equity Capital Management, an independent German private equity firm, has held a final closing of its new fund German Equity Partners IV.

GEP IV reached its hard cap of EUR230m, exceeding the EUR200m target.

The fund, which will be managed by ECM, has a typical limited partnership structure with a ten year lifespan plus the option for two successive one-year extensions.
 
GEP IV has significantly broadened its investor base through commitments from more than 20 investors which include fund of funds, insurance companies, family offices and pension funds. More than half of GEP III investors re-committed to the new fund.

By geography, GEP IV also broadened its international investor base with roughly 30 per cent of commitments from German based institutions, 40 per cent from the rest of Europe and the balance of 30 per cent from North America.
 
GEP IV plans to make eight to ten investments over a five year period in target companies based in German speaking countries. Investments by GEP IV will typically be structured as management buyouts. The focus of investments will be majority equity holdings in mid-market companies with an enterprise value of EUR20m to EUR100m across a variety of sectors.

Christopher Peisch, senior partner of ECM, says: “We have a philosophy of long-term partnership with our investors and are particularly pleased by the fact that a majority of capital committed to GEP IV came from existing investors. Both existing and new investors represent an extremely high level of internationally recognised quality and reputation. The fundraising process formally commenced in February this year and we are delighted to have completed it on a timely basis in an increasingly challenging environment. We continue to see attractive opportunities in our target markets based on our established strategy and have significantly expanded our team in the last year.”

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