Mandarin closes second Sino-European fund at $217m
Sino-European GP Mandarin Capital Partners have closed its second middle-market fund at just under EUR200 million ($217 million).
The corpus for Mandarin Capital Partners II (MCP II) falls short of the EUR1 billion target set in 2012. During the fundraising process, the private equity firm revised its overall target to EUR400 million.
The final close also comes more than two years after a EUR110.5 million first close in September 2013. The GP said the fundraising process has been tougher than expected.
The second fund has received commitments from HarbourVest Partners, Neuberger Berman, LGT Capital Partners, LFPE, Idinvest Partners, HQ Capital, the family office of Roland Berger, and Guosen Securities, a statement said. Several existing Italian investors, including Banca Intesa Sanpaolo, also re-upped in the new fund.
MCP II targets companies involved in healthcare, environmental technology, oil and gas, and specialty chemicals. Industrial companies focused on product safety and energy saving are also of interest. Check sizes are in the EUR30-50 million range for minority and majority stakes.
The fund has already deployed nearly EUR40 million across two transactions. In June, the GP teamed up with China's Zoomlion Heavy Industry Science & Technology to buy a 75% stake in Ladurner, an Italian waste treatment and environment protection firm, for EUR75 million. Zoomlion put in EUR57 million and has a 57% interest in the business, with the PE firm contributing the remainder.
Mandarin supported Zoomlion in its acquisition of Italy's CompagniaItalianaFormeAcciaio (CIFA) eight years ago, together with Hony Capital and Goldman Sachs. The PE investors subsequently fully exited the Zoomlion CIFA subsidiary to the parent company.
The GP made 10 investments in Chinese and Italian companies from its EUR328 million debut fund, raised in 2007. In September 2014, the GP completed its fifth exit, selling Italy-based Italmatch Chemicals to European private equity firm Ardian. Mandarin said this exit took the IRR for MCP I to 40%, with 108% of the capital drawn down by Fund I returned to investors.
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