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O’Melveny Represents ECM Equity Capital Management GmbH in the Final Closing of German Equity Partners IV

July 03, 2012

FOR IMMEDIATE RELEASE

Contact:
Natalia Dorfman
O’Melveny & Myers LLP
+44 (0) 20 7558 4888
ndorfman@omm.com

Piper Hall
O’Melveny & Myers LLP
+1 202 220 5022
phall@omm.com

O'MELVENY REPRESENTS ECM EQUITY CAPITAL MANAGEMENT GMBH IN THE FINAL CLOSING OF GERMAN EQUITY PARTNERS IV

LONDON, UK─JULY 3, 2012─O’Melveny & Myers LLP represented ECM Equity Capital Management GmbH in the final closing of German Equity Partners IV, at €230 million. O’Melveny’s London-based team was led by partner John Daghlian and supported by associates Angela Yung, Lucinda Tse and Jonathan Shelley. The legal negotiations took just under four weeks to achieve first closing.

This is the latest in the extensive range of private equity funds that have achieved closings (in most cases first and final closings within close proximity to one another) that O’Melveny’s London-based team has advised so far this year . In the last three months alone, O’Melveny has assisted Turk Ventures Advisory Limited (Turkven) on the final close of its third Turkish fund, Turkish Private Equity Fund III LP, and ISIS Equity Partners with respect to its fifth major private equity fund, ISIS V LP, which, with German Equity Partners IV, were all heavily oversubscribed. Other funds which have held closings this year are Pera, a first time Turkish fund, and Greensphere, the Jon Moulton-sponsored green fund.

O’Melveny also advised long term client Coller Capital on its agreement with Crédit Agricole S.A. for Coller’s acquisition of the bank’s private equity manager, Crédit Agricole Private Equity (CAPE), together with substantially all of Crédit Agricole’s remaining investments in the funds managed by CAPE. The transaction was announced on December 16, 2011, and was completed in the March 2012.

About O’Melveny & Myers LLP
With approximately 800 lawyers in 15 offices worldwide, O’Melveny & Myers LLP helps industry leaders across a broad array of sectors manage the complex challenges of succeeding in the global economy. O’Melveny’s London office is recognised for its strength in private equity, and has been ranked in Chambers and Partners’ “UK Investment Funds” category since 2006. We are a values-driven law firm, guided by the principles of excellence, leadership, and citizenship. Our commitment to these values is reflected in our dedication to improving access to justice through pro bono work and championing initiatives that increase the diversity of the legal profession. For more information, please visit www.omm.com.

The following press release was distributed by ECM Equity Capital Management GmbH:

ECM Equity Capital Management closes GEP IV at EUR 230 million

  • GEP IV closes at hard cap of EUR 230 million
  • Continuation of successful investment strategy: majority equity investments in mid-market companies in German-speaking Europe

Frankfurt, 3 July 2012 – ECM Equity Capital Management (“ECM”), an independent German private equity firm headquartered in Frankfurt am Main, held a final closing of its new fund German Equity Partners IV (“GEP IV”) on 29 June 2012. GEP IV reached its hard cap of EUR 230 million, exceeding the EUR 200 million target. The fund, which will be managed by ECM, has a typical limited partnership structure with a ten year lifespan plus the option for two successive one-year extensions.

GEP IV has significantly broadened its investor base through commitments from more than 20 investors which include fund-of-funds, insurance companies, family offices and pension funds. More than half of GEP III investors re-committed to the new fund. By geography, GEP IV also broadened its international investor base with roughly 30% of commitments from German based institutions, 40% from the rest of Europe and the balance of 30% from North America.

GEP IV will maintain the successful investment strategy pursued in prior funds. It plans to make eight to ten investments over a five year period in target companies based in German speaking countries. Investments by GEP IV will typically be structured as management buyouts. The focus of investments will be majority equity holdings in mid-market companies with an enterprise value of EUR 20 million to EUR 100 million across a variety of sectors. With roots dating back to 1995, ECM, the manager/advisor respectively of GEP funds I-IV, is one of the most established investors in the mid-market in Germany with historical investments focused on private company succession situations and corporate divestitures

Christopher Peisch, Senior Partner of ECM, comments on the final closings of the new fund:
“We have a philosophy of long-term partnership with our investors and are particularly pleased by the fact that a majority of capital committed to GEP IV came from existing investors. Both existing and new investors represent an extremely high level of internationally recognized quality and reputation. The fundraising process formally commenced in February this year and we are delighted to have completed it on a timely basis in an increasingly challenging environment. We continue to see attractive opportunities in our target markets based on our established strategy and have significantly expanded our team in the last year.”

ECM supports portfolio companies with both strategic support and financial experience in their transition to an independent, management-owned business. Past investments of the GEP funds include food delivery specialist eismann and wind turbine producer Vestas. Recent acquisitions of GEP III include the restaurant chain Maredo, frozen food producer Kadi and bakery company Kamps. In August 2011, GEP III sold the logistics company IN tIME in a secondary transaction.

Park Hill Group LLC served as placement agent to ECM. O’Melveny & Myers LLP and SJ Berwin LLP acted as legal counsel to the fund internationally and in Germany respectively.

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ECM Equity Capital Management GmbH (ECM)

An independent private equity firm, ECM is headquartered in Frankfurt am Main, Germany. ECM served or serves as the manager of/advisor to respectively the private equity funds German Equity Partners I-IV with aggregate capital under management in excess of EUR 650 million. The investment focus is on midsized companies in the manufacturing and service sectors in addition to the wholesale and retailing industries. Preferred acquisition targets are companies with revenues of EUR 25 million to EUR 250 million. The funds typically structure their investments as management buyouts. Investment opportunities arise from ownership succession situations with privately held companies and from corporate divestitures.

Further information at: www.ecm-pe.de

On behalf of ECM:

Charles Barker Corporate Communications GmbH
Kornelia Spodzieja, phone +49(0)69 794090-40, Kornelia.Spodzieja@charlesbarker.de
Tobias Eberle, phone +49(0)69 794090-24, Tobias.Eberle@charlesbarker.de