Keensight Capital raises €1 billion for 5th growth buyout fund
Paris - Keensight Capital, a leading private equity firm for pan-European investments in growth buyouts, has launched its new equity fund Keensight V with capital commitments of one billion euros with the first and final closing, successfully completing the fundraising after only four months. The fund has thus reached the upper limit (“hard cap”) set out in the fund statutes and exceeded the originally planned volume of 750 million euros.
The fund was significantly oversubscribed due to strong demand from existing and new investors from Europe, North America, the Middle East and Asia. The investor base of the Keensight V fund is globally diversified and consists of approximately 90% institutional investors (asset managers, pension funds, insurance companies, banks and sovereign wealth funds) and approximately 10% executives of former portfolio companies and family offices.
The new Growth Buyout Fund is a consistent continuation of Keensight Capital’s investment strategy, which has already been successfully implemented in the past. This is based on partnerships with passionate entrepreneurs and investments in profitable, fast-growing companies in Western Europe with sales between EUR 15 and 250 million.
Germany is a key target market for the new fund due to its fast-growing IT sector and its significant healthcare sector, which is one of the largest industries in the country with around seven million employees.
With the new fund, Keensight intends to make greater use of its extensive experience in supporting very fast-growing companies in the internationalization of their business models, its in-depth sector expertise and international network in the IT/tech and healthcare sectors, its successful cooperation with start-up entrepreneurs in a spirit of partnership, and its flexible structuring of investments in this country.
Keensight’s team consists of 30 experts with eleven different nationalities, which continues to focus on investments in Western Europe in the range of 20 to 200 million euros. The industry focus is on information technology and healthcare. The team already has many years of expertise in this area. In 2016, for example, Keensight acquired the biomaterials division of aap Implantate AG in this country. Keensight specializes in partnering with established companies with high growth potential and takes a flexible approach that allows for both majority and minority investments.
Since its inception 20 years ago, the team has invested in 52 companies and successfully completed 37 exits, generating a total gross internal rate of return (IRR) of 39% and an average gross multiple of 2.8. Keensight’s portfolio companies have achieved average annual revenue growth of 22% over the past five years and an average EBITDA margin of 26% in 2018.
Jean-Michel Beghin (photo), Managing Partner at Keensight Capital, said: “With this €1 billion fund, Keensight Capital consolidates its position as one of the leading growth financiers in Europe. The capital raised will support us in our continued development and allow us to strengthen both our team and our deal pipeline. The capital raise was a great success and demonstrates the value our investors see in our differentiated positioning and the discipline of our team. We are pleased to have the support of our long-time investors, on the one hand, and the addition of new investors to the fund, on the other.”
Park Hill served as Keensight’s placement agent.
About Keensight Capital
Keensight Capital, one of the leading European growth financiers in the buyout sector, supports entrepreneurs in implementing their growth strategies. For 20 years, the Keensight team has used its knowledge of corporate finance and growth industries to make long-term investments in profitable companies with high growth potential and revenues of between €15 million and €250 million.
Based on expertise in the Information Technology/ Internet and Healthcare/ Wellness sectors, Keensight identifies the best investment opportunities in Europe and works closely with management teams to develop and implement their strategic objectives. www.keensightcapital.com