Broad demand from existing clients and new investors from Germany and abroad // Successful implementation of the investment strategy since 2020, with now 18 transactions and the first distribution to take place in December 2022 // Fundraising for the follow-on fund to start in 2023
Munich – Golding Capital Partners announces the final close of the fund Golding Buyout Co-Investment 2020 with commitments of €273 million. Strong demand, especially from existing investors, meant that the original target of €200 million was comfortably exceeded. In addition to traditional Golding clients such as German pension funds, savings banks and insurance companies, new international clients were also convinced by the product, particularly family offices. The investment programme will follow on seamlessly from the success of the dedicated Golding co-investment strategy – in Q3 2022 the fund Golding Infrastructure Co-Investment 2020 was also significantly oversubscribed and Golding Private Debt Co-Investment 2021 is currently in successful fundraising.
Since the fund was launched in 2020 a total of 18 transactions have already been completed and a large part of the fund volume invested in attractive businesses. These are essentially medium-sized companies in Europe and the USA from the technology, software and healthcare sectors. “We focus on growth when selecting the investments. The companies are expanding in fast-growing markets such as cybersecurity, the internet of things or nuclear medicine, or act as platforms for focused buy-and-build strategies. Many of our portfolio companies are having great success implementing their investment plans, so we are not only reporting positive valuation uplifts, but thanks to some partial exits will also be making distributions to our investors as early as this year”, explains Daniel Boege, Partner and Head of Buyout at Golding. Further transactions are in preparation and portfolio construction will be finished in the first half of 2023.
Crisis-resistant target sectors and multidimensional diversification
In line with Golding’s proven approach from 22 years’ experience of investing in the buyout segment, Golding Buyout Co-Investment 2020 will diversify its assets across various dimensions. The fund will therefore invest in more than twenty individual companies and cover a range of economic sectors and geographical markets.
“We also give our investors optimal diversification in terms of the individual co-investment partners and the managers involved. Thanks to our track record going back for decades, we have been able to build a dependable and sophisticated network, which incorporates some unique and specialised expertise”, says Hubertus Theile-Ochel, Managing Partner at Golding. “As well as diversifying risks, our investors are also interested in the consistent application of demanding ESG criteria, of course, and a fundamental resilience in the face of inflation and recession”, added Theile-Ochel.
Golding Buyout Co-Investment 2020 applies the Golding co-investment strategy established in 2015 and is focusing on midcap companies in defensive sectors, such as healthcare and technology, with conservative capital structures in Europe and North America. Its successor fund will start fundraising in 2023. The fund is aiming for a net target IRR of 16 to 18 per cent p.a.
