French fund manager Montefiore Investment has launched its third vehicle and has already picked up more than half of its €180m target.
Some €90m has come from LPs in the private equity firm’s previous fund, while two new investors have also made pledges.
The new Montefiore backers are a US fund of funds and an unnamed European bank, unexpected given the pressures lenders are facing from regulators, making alternative investments more costly.
The firm concentrates on backing locally supplied services in France and has managed to achieve an average gross IRR of 30 per cent since it started out in 2005.
President Éric Bismuth noted that during Montefiore’s investment B&B Hotels, Homair Vacances, Asmodée and Auto Escape have seen their revenues more than triple.
The GP recently agreed to sell 40 per cent of its stake in Homair Vacances, a mobile homes business.