Abris closes latest CEE fund on €450m

Abris has exceeded expectations to reach hard-cap for its Abris Capital Fund II {{{*}}} – despite no exits since the GP was founded in 2007.

Abris Capital Partners has reached its hard-cap of €450m for a final close on its second fund targeting the CEE mid-market. A total of 21 investors came into the fund, against 18 for Fund I. Approximately half the LPs were European with the balance from the US, Australia and the Middle East.

The first closing comprised 12 investors, two of which were US endowments and new to the fund. European Investment Fund, European Bank for Reconstruction and Development and Alpha Associates, usual suspects in many CEE funds, were not in the latest Abris fund, hinting at the institutional interest in Abris from further afield.

Abris reached a first close on €210m in October 2011, approximately five months after PPMs were issued.

Notably, the firm has now raised two vehicles despite having no exits under its belt. Co-founder George Swirski (pictured), says: “This continues to be a buying environment, which is why we’ve been hesitant to sell. We’ve had offers on businesses within the portfolio that don’t reflect their true underlying value, but we weren’t prepared to sell into a weak environment. We think this is about to change.”

Indeed Jefferies has been appointed to distribute IMs for Polish auto fleet management business Masterlease, which Abris backed alongside management and an Abris LP in April 2010. The deal was unusual in that it subsequently utilised the Warsaw Stock Exchange’s trading platform Catalyst for bonds totaling €129.3m to replace the leverage previously provided to Masterlease by GMAC.

There are three key-men in Fund II, with terms and conditions believed to be the standard 2 and 20. The fund life is 10 years, with two one-year extensions possible.

Abris has already made four commitments out of Fund II. The firm’s most recent deal was the buyout of Romanian parcel delivery business Cargus from Deutsche Post last October. The deal marked an Abris first in Romania, but its second in the industry – Abris acquired the Siodemka parcel courier business in Poland in 2011.

Abris’s first vehicle raised €320m in October 2008, above its €300m target.

The fundraising for Fund II was assisted by Atlantic Bridge in The Hague, and Liberty Global in Boston. Travers Smith provided fund structuring and legal advice; Jersey Trust Company acts as the fund’s administrator.

Abris was set up in 2007 by George Swirski, formerly of Advent International, and Neil Milne, ex Copernicus Capital. Today Abris has offices in Poland, Romania and Ukraine.

Source – unquote.com

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