Investindustrial (the “Firm”) is pleased to announce the first and final closing of Investindustrial Lower Mid-Market IV (the “Fund”) at its hard cap of €1.5 billion, following a fundraising process of less than four months. The Fund’s predecessor, Investindustrial Lower Mid-Market III, raised €1.1 billion in 2023.
Investindustrial Lower Mid-Market IV was oversubscribed, with exceptionally strong support from existing investors as well as substantial demand from new groups, resulting in overall capital demand of more than 150% of hard cap. Despite the strong investor support for the strategy, Investindustrial applied the same discipline it brings to its investment approach and maintained the €1.5 billion hard cap.
The fundraising strategically prioritised existing investors to reach the target of €1.25 billion, with the €250 million delta to hard cap reserved for new investors; both pools of capital were significantly oversubscribed. The Firm is pleased to have attracted new investors to the Fund from North America, Asia and the Middle East, with European investors continuing to make up the core of the Firm’s capital base. Investindustrial is particularly pleased to have the long-term support from investors who have backed the franchise for over two decades, some since the beginning.Today, a substantial majority of investors in Lower Mid-Market also invest in Investindustrial’s Core Mid-Market programme, enabling deeper and more productive partnerships between funds and co-investments.
With 36 years of investment experience, Investindustrial has established itself as the leading operationally driven investor, partnering with ambitious mid-market businesses across Europe through its global platform and dominant position in Southern Europe. The Lower Mid-Market programme has invested in 20 platform investments and a further 80 add-on acquisitions globally.
The Firm’s proven investment approach focuses on partnering with family-owned, high-quality B2B and B2C mid-market companies, predominantly in the Industrial Manufacturing and Healthcare & Services sectors. Investindustrial provides capital and global M&A capabilities along with industrial and operational expertise to drive international expansion and sustainable value creation, helping companies achieve their full potential.
Andrea C. Bonomi, Chairman of the Investindustrial Industrial Advisory Board, said: “We are extremely proud of the strong backing we have received from long-standing partners, without whom we could not have built our franchise over 36 years. Their partnership has enabled us to build and scale high-quality mid-market businesses internationally, creating lasting value for companies, investors and society. We are well positioned across the entire mid-market, strengthening our leading position in Southern Europe with family-owned businesses, and consolidating our position as the mid-market investment group of the future, delivering consistent and attractive returns for our investors.”
Proskauer Rose (London) LLP and LAB Partners acted as legal advisors. Gen II Fund Services (Luxembourg) S.à r.l. is acting as fund administrator.
ABOUT INVESTINDUSTRIAL
Investindustrial is a leading European group of independently managed investment, holding, and advisory companies with €18 billion of raised fund capital. With sustainability principles deeply embedded into the Firm’s core approach, Investindustrial has a 36-year history of providing mid-market companies with capital, industrial expertise, operational focus and global platforms to accelerate sustainable value creation and international expansion. Certain companies of the Investindustrial group are authorised by, and subject to regulatory supervision of the FCA in the United Kingdom, the CSSF in Luxembourg and the FSRA in Abu Dhabi Global Market. References to ‘Investindustrial’ are of generic nature, for ease of reading, and may refer, depending on the context, to a fund or any of its independently managed subsidiaries. Investindustrial’s investment companies act independently from each other and each Investindustrial fund.
More information is available at: https://www.investindustrial.com