Small European buyout firms have beaten private equity giants such as Ardian and CVC Capital Partners as top performers by delivering the most consistent returns to investors over the past 10 years.
Dutch private equity firm Main Capital was the most reliable buyout fund manager in Europe with all three of its funds posting top-quartile performance as of 30 September 2018, according to data provider Preqin.
Main Capital typically invests from €10m to €50m in enterprise software companies in the Benelux, DACH and Nordics regions, according to its website. The Dutch firm, which ranked third in the global list, has only raised $430m over the past 10 years.
Preqin has ranked firms on how often their funds delivered top-quartile performance based on their net internal rates of return.
US private equity firm Veritas Capital was the top performer globally, with all five of its funds delivering top-quartile performance during the 10-year period. Veritas has raised $6.6bn in total. It closed its sixth fund in 2017 at $3.6bn and is currently raising its seventh fund with a target of $6bn, according to a filing on the Securities and Exchange Commission.
The second firm in the list, Canadian investor Brookfield Capital Partners, which has raised $11.5bn in total, had all three of its funds in the top-quartile.
The second European firm to make the list is Swiss company Ufenau Capital Partners, which has raised much smaller funds, totalling $1.1bn. According to Preqin, all three of Ufenau’s funds have delivered top-quartile performance over the past decade.
Buy-and-build specialist Ufenau acquires majority stakes in profitable service companies in German speaking countries. It invests in healthcare, education, business and financial services, according to its website.
London-based Inflexion Private Equity Partners is the third European and first UK firm, ranking in 10th place. Four of its six buyout funds delivered top-quartile performance in the decade. Inflexion raised $7.6bn in aggregate for its funds, Preqin noted.
Founded in 1999, Inflexion has £5.4bn of assets under management, according to its website. The firm, which employs 85 people and has invested in 75 companies, backs businesses across a range of sectors, taking both minority and majority stakes.
By Joice Alves