Eight years after the final closing of Fund III, Borromin completed the sale of Guntermann & Drunck (G&D), at a Multiple on Invested Capital (“MOIC”) of 3.9x.
The sale of G&D, the last remaining investment of Borromin Capital Fund III, L.P., concludes the realisation phase of the fund. Overall, gross MOIC of 3.1x and IRRs of 37% have been achieved on its investments. Borromin Capital Fund III continued the proven investment strategy undertaken for preceding funds, predominantly targeting majority stakes in highly successful and profitable businesses, typically valued between €25-150 million and located within German speaking Europe and the Benelux. These were mostly highly cash generative businesses with double-digit EBITDA margins and clear growth potential.
Nick Money-Kyrle, Managing Partner at Borromin said “We are extremely pleased with the overall fund result. Despite difficulties encountered in the current pandemic, our niche investment strategy has proved robust, as evidenced by the fund’s overall performance.”
Marco Bernecker, Managing Partner at Borromin added “We have been able to support many excellent companies and entrepreneurs during the term of the fund and are pleased that we have made a contribution to securing the future of these companies whilst achieving excellent results for our investors.”
Borromin is currently investing Borromin Capital Fund IV, a € 300m fund, which had its final closing in early 2019. The fund is already 43% invested and, with good prospects in the project pipeline, Borromin plans to start fundraising for Fund V at the end of 2021/ early 2022.
Borromin (formerly Steadfast Capital) is an independent private equity investor focusing on medium-size businesses within German speaking Europe and Benelux countries. Funds advised by Borromin invest in mid-size companies providing equity for succession issues, management buy-outs and also provide capital for growth opportunities. Borromin was founded in 2001 and follows a successful, value-oriented strategy of investments in profitable companies in various sectors.