Equistone announces inaugural investments through the Equistone Reinvestment Fund

Equistone Partners Europe today announces its inaugural investments through the Equistone Reinvestment Fund (“ERF”). The ERF is a newly-formed fund vehicle through which the firm can make minority investments in select portfolio companies at the time they are sold by its flagship buyout funds, enabling Equistone to retain a minority shareholding. Today’s announcement coincides with the third deal completed by the ERF, Equistone’s reinvestment in the UK marketing technology and services business Team ITG following the sale of the company to Bridgepoint. 

The ERF will enable Equistone to build a portfolio of minority positions in companies that the firm has sold to another financial sponsor, leveraging its exclusive access to MBOs led by other private equity firms looking to benefit from these businesses’ next stage of growth. The fund extends Equistone’s proven strategy of investing in high-quality mid-market businesses and partnering with successful management teams across Benelux, France, Germany, Switzerland and the UK.

In addition to the reinvestment in Team ITG, the ERF has completed two other minority deals to date. In November 2021, ERF reinvested in Bruneau, a leading online retailer of office supplies and equipment, alongside TowerBrook Capital Partners, which had  acquired a majority stake in the company from Equistone V.  Also in November 2021, Equistone reinvested in Charles & Alice Group, a leading French manufacturer and distributor of fruit products and plant-based desserts, after the exit of the majority stake from Equistone IV in a management buyout supported by Crédit Mutuel Equity. 

Guillaume Jacqueau, Managing Partner of Equistone, said: “The Equistone Reinvestment Fund is highly complementary to our continued core focus on European mid-market buyouts. Our ethos of partnering closely and collaboratively with our portfolio companies’ management teams frequently throws up invitations for Equistone to remain invested as a minority shareholder post-exit. 

Christiian Marriott, Partner and Head of Investor Relations, added: “Having recognised this attractive opportunity, and with a keen eye on ensuring that we preserve the focused strategy on majority buyouts in our core funds, we’re delighted to have established a dedicated fund to reinvest in high-performing businesses alongside outstanding management teams.” 

Equistone’s established strategy within its flagship buyout funds is to invest in European mid-market buyouts, deploying between €25m and €200m+ of equity into businesses with enterprise values of between €50m and €500m, with a strong focus on change-of-ownership deals. The firm is currently investing its sixth fund, Equistone Partners Europe Fund VI, which held a final closing at its €2.8 billion hard cap in March 2018.