The Fund, which closed at its hard cap of €540 million after exceeding the original target of €400m at the first closing in September, marks an increase in fund size reflective of this being the first time that THCP has offered access to institutional investors. THCP has previously been supported by a breadth of highly connected European families and high net worth individuals, who continue to be critical to THCP’s network driven sourcing strategy.
THCP, which currently manages three funds and assets of over €1 billion, seeks to partner with outstanding entrepreneurs and management teams of European mid-market businesses and support them in their next phase of growth. By providing tailored capital solutions, THCP helps its entrepreneurs to retain majority ownership stakes whilst ensuring sufficient controls and an attractive risk-adjusted return profile, which has historically delivered consistent double digit IRRs.
THCP’s third fund has attracted over half of its support from new institutional investors across Europe, North America and Australasia with the remaining capital coming from the ongoing support of its strategic investor base of highly connected families and high-net worth individuals.
The fast expanding THCP team of 21 people, including 10 members with blue-chip private equity and credit backgrounds, has remained extremely active on deals throughout 2018. After holding a first close in September 2018, Three Hills Capital Solutions III is already 20% invested across two successful fast-growing businesses; Recycling Lives, a UK-based provider of end-to-end recycling and waste management solutions; and ACT, a Netherlands based, leading global intermediary in niche energy commodities markets.
The final closing of Three Hills Capital Solutions III follows two exits completed by THCP over the last 18 months including the sale of Genius Sports Group to Apax and the IPO of Aquafil.
Mauro Moretti, Founder and Managing Partner at Three Hills Capital Partners commented: “Achieving €1billion of assets under management in five years is a significant milestone for us as a business and I want to thank the whole team for the incredible effort put behind our venture. Attracting many new international LPs from beyond our original loyal investor base is a truer sign of our successful strategy of approaching the private equity industry in a differentiated way. We have found there are many entrepreneurial management teams across Europe that are in need of supportive capital to grow their businesses, but want to retain control of their companies. Three Hills is prospering because we have devised a flexible way of investing the fresh capital into businesses in a supportive, flexible way.”
Three Hills Capital Partners were advised by Rede Partners regarding the institutional investors into Fund III, and Decalia Asset Management regarding new private wealth investors. Clifford Chance were THCP’s legal advisors during the fund raising process.