Electra Partners today announces that it has extended its relationship with existing German investment partner, Steadfast Capital GmbH (“Steadfast”), by investing EUR26 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 EUR36 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 GBP34 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 EUR200 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 EUR150 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 (pictured), 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 GBP300 million of investment capacity.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC (“Electra”).
