Advent International raises $17.5 billion for ninth global private equity fund
- Fund exceeds $16 billion target and reaches $17.5 billion hard cap in six months
- Demonstrates strong support for Advent’s sector-focused strategy and operational approach to creating value through business transformation and earnings growth
BOSTON and LONDON, June 6, 2019 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has completed fundraising for Advent International GPE IX Limited Partnership (“GPE IX” or the “Fund”). The Fund reached its hard cap of $17.5 billion (€15.6 billion) and surpassed the $16 billion (€14.3 billion) target after six months in the market. Advent’s previous global fund, GPE VIII, closed on $13 billion in 2016.
GPE IX will pursue the same proven strategy as Advent’s eight prior Global Private Equity (GPE) funds, investing in buyout, corporate carve-out, public-to-private and growth equity transactions, primarily in Europe and North America and selectively in Asia and Latin America.
Sector specialization has been at the heart of Advent’s approach since its inception, and the Fund will continue to focus on five core industries where the firm has significant experience and knowledge: (1) business and financial services; (2) healthcare; (3) industrial; (4) retail, consumer and leisure; and (5) technology, media and telecom. Advent recently announced plans to deepen its commitment to the technology sector by expanding its technology investment team and opening a new office in the San Francisco Bay Area.
“The successful fundraising of GPE IX marks a significant milestone for Advent and increases the amount of capital we are able to invest in Germany,” said Ranjan Sen, Managing Partner at Advent in Frankfurt. “The funds raised allow us to continue our long-established strategy of partnering with management teams to accelerate business growth.”
Ron Ayles, Managing Partner at Advent in Frankfurt added, “Advent has been investing in Germany for almost 30 years and has actively supported the value creation of 30 businesses, with more than €3.1 billion invested across the country. Germany offers a wide range of opportunities for a firm like Advent, which makes a solid commitment to the markets in which it operates.”
“We are pleased with the strong support GPE IX received from both existing and new investors,” said David Mussafer, a Managing Partner at Advent in Boston. “We believe that our success is due to our long-established sector focus, global footprint, private partnership model, and the significant operational resources we apply to our investments.”
“Advent’s large, globally integrated team gives us a powerful advantage in identifying and executing attractive investment opportunities around the world,” said James Brocklebank, a Managing Partner at Advent in London. “We are particularly well-positioned to pursue complex situations, such as corporate carve-outs, where we can apply our sector and operating expertise to unlock value in these dynamic businesses.”
EXTENSIVE RESOURCES TO SUPPORT MANAGEMENT TEAMS
Advent has more than 195 investment and portfolio support professionals worldwide. A team of 157 professionals across Europe, North America and Asia will deploy GPE IX. These individuals can leverage the knowledge and experience of 40 professionals from Advent’s Latin American private equity program, as well as a global network of world-class operational resources. This includes over 115 external Operating Partners and Operations Advisors, former senior executives with deep sector and functional expertise.
Through this platform, Advent brings industry best practices, tools and capabilities to help management teams execute value creation plans and accelerate earnings growth. Since 2005, portfolio companies that Advent has owned for at least a year have increased revenue and EBITDA on average by 14% and 15% annually during its investment.
GPE IX saw significant demand from Advent’s existing investors, with more than 90% of the Fund’s commitments coming from limited partners in prior Advent funds.
STRONG TRACK RECORD OVER THREE DECADES
Advent’s GPE program has successfully executed investments and exits over multiple generations of funds and several economic and private equity cycles. Since 1990, the program has invested in 258 private equity transactions spanning 31 countries and fully or substantially realized 213 of those investments.
Across all of its funds, Advent has invested $44 billion (€36 billion) in more than 345 private equity transactions in 41 countries. The firm’s current portfolio companies generated $50 billion (€44 billion) in annual revenue and employed over 290,000 people as of their latest year end.
Recent IPOs and exits of companies in the GPE program include Ammeraal Beltech, Bojangles’, Cotiviti, Genoa Healthcare, KMD, lululemon athletica (partial exit), Mondo Minerals, MORSCO and Nexi (IPO, partial exit).
Recent GPE investments include Aimbridge Hospitality, BioDuro, Deutsche Fachpflege Gruppe, INNIO (formerly GE Distributed Power), Laird, Manjushree Technopack, Prisma Medios de Pago, Walmart Brazil and Zentiva.
In addition to the GPE program, Advent is currently investing its sixth private equity fund focused on buyouts and growth equity investments throughout Latin America. The 2015-vintage fund, LAPEF VI, is capitalized at $2.1 billion.
This press release is not an offer or solicitation of an offer, or an invitation or inducement, to invest in any Advent International fund. No person may invest in any Advent International fund except in accordance with and subject to the terms of the applicable fund documentation and applicable law.
About Advent International
Founded in 1984, Advent International (“Advent”) is one of the largest and most experienced global private equity investors. As of December 31, 2018, the firm had $36 billion (€31 billion) in assets under management, which does not include the $17.5 billion (€15.6 billion) raised for GPE IX.
About Advent in Germany
Advent International GmbH was established in Germany in 1991 and provides investment advice to Advent through its Frankfurt-based advisory team. Advent is one of the leading private equity investors in Germany and has been investing in European companies since 1990. Advent International GmbH has advised on investments of more than €3.1 billion in 30 companies. The team focuses on five core sectors: business and financial services; healthcare; industrial and chemicals; retail, consumer and leisure; and technology, media and telecom.
Over the last decade, investments have included Innio, a leading global producer of reciprocating gas engines for power generation and mechanical drive/gas compression, Deutsche Fachpfledge Gruppe (“DFG”), Germany’s largest outpatient intensive care producer, Concardis Payment Group now part of Nets, a leading provider of digital payment solutions, Addiko Bank (formerly Hypo Group Alpe Adria), which operates a banking network in southeast Europe; allnex, the No. 1 global producer of industrial coating resins; Douglas Holding, Europe’s leading beauty retailer; GFKL, a provider of receivables management services in Germany; and Median Kliniken, an independent rehabilitation care provider in Germany.
After 35 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies. For more information, visit www.adventinternational.com
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