The British manager Cinven has secured commitments of **€2.3 billion** for its new fund, named **Strategic Fund 2 (SF2)**. This fund will focus on investing in mid-sized European companies valued between **€200 and €600 million**.
The British private equity firm Cinven has achieved commitments amounting to €2.3 billion with its new mid-market fund, which has been dubbed Strategic Fund 2 (SF2) and is specialised in investing in mid-sized European companies. This is a market niche that will encompass the buying and selling of companies valued between €200 and €600 million.
The fundraising process for the vehicle has been a success, as the amount raised exceeds the vehicle's target size by 50%, which aimed to raise €1.5 billion, as reported by Expansión last May.
Unlike other managers, Cinven has so far avoided launching vehicles specialised in credit, real estate, infrastructure, growth equity or venture capital and has remained true to investing in companies through buyout funds in its five main sectors: business services, consumer, financial services, healthcare, industry, and telecommunications.
Cinven's move into the mid-market is significant. This segment will allow the British manager to explore deals that are too small for its main fund, the Eighth Cinven Fund, which raised $14.5 billion in January 2024, and which are potentially equally profitable.
Furthermore, some argue that the mid-market is a less cyclical niche than that dedicated to large transactions (large cap).
Cinven's first step towards a multi-strategy approach, however, was taken in 2022, with the closing of a €1.5 billion vehicle specialised in financial companies in Europe, the Strategic Financials Fund (SFF). In practice, the SF2 will be the successor to this vehicle.
Cinven's new fund operates in four markets: the DACH region (Germany, Austria, and Switzerland), Iberia (Spain and Portugal), the United Kingdom, and Ireland, and will invest in the sectors of financial services, business services, and telecommunications and media (TMT).
Through the SF2, Cinven has already completed four investments: Objectway, a provider of digital solutions for wealth managers, banks, and asset managers; Flint Global, specialised in advising companies and investors on regulatory, political, and economic issues; Ongoing Warehouse, a cloud provider of warehouse management systems; and Optio Group, a platform for general insurance agents.
“We are grateful for the strong support for the SF2 from both veteran investors and new ones globally, which we believe is proof of our unmatched European approach; our exclusive focus on private equity acquisitions; a decades-long track record of successful investment through cycles; and a total alignment with our investors,” commented Bruno Schick and Jorge Quemada, co-managing partners of Cinven.
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