© Leaders League
Rothschild & Co has announced it has completed the fundraising for Five Arrows Secondary Opportunities V (FASO V) fund.
A Rothschild & Co statement said the fund received total capital commitments of €1 billion, which was above the initial target of €700 million.
Investors in the fund include “a globally diversified group of institutions, corporations, international family offices and entrepreneurs”. In addition, Rothschild & Co, the partners and senior staff of the firm, and the fund's investment executives have also made a substantial commitment to FASO V.
FASO V's investment strategy is focused on Secondary Directs (or General Partner-led deals) predominantly in the European small and mid-market. Secondary Directs can take several forms, such as fund restructurings or spin-offs and are typically initiated by a General Partner (GP). FASO V targets equity tickets of €10 million to €100 million per transaction, but it has the ability to commit significantly larger amounts in conjunction with the fund's limited partners.
Willkie Farr & Gallagher LLP advised Rothschild & Co on the raising of FASO V. The Willkie Farr & Gallagher team included partner Nathalie Duguay, and associates Raphaël Bloch and Barbara Botbol.
FASO’s previous fund, FASO IV, completed its investment period in 2019. FASO IV made 15 investments and committed 127% of the fund “to maximise the capital at work towards investments”, the statement said.
FASO has a team of 16 investment professionals, which Rothschild & Co says is effectively increased to 28 by leveraging the Five Arrows Multi Strategies platform (FAMS) with offices in Paris, London and New York.
Rothschild & Co said FASO V was the sixteenth fund raised above its expected target by Rothschild & Co's merchant banking business over the last 10 years. It brings the total assets under management to approximately €13 billion across four areas: corporate private equity; senior and junior credit; primary and secondary fund investing; and co-investments.
Marc-Olivier Laurent (pictured), executive chairman of Rothschild & Co's merchant banking business, said: “We are delighted with the success of the FASO V fundraising and are grateful for the support of both our existing investor base as well as our new investors. I am confident that under the leadership of [FASO managing partner] Mireille Klitting, we will continue to develop our secondaries business and work hard to generate the returns our investors expect from us.”
Mireille Klitting, managing partner of FASO said: “The Secondary Direct market continues to grow strongly with the need for ever more sophisticated solutions for complex needs. FASO V is well-positioned to further capitalise on this opportunity due to the depth of our experience gained during more than 16 years in this market.”