With its new fund worth 25 billion dollars, the financial investor Advent will provide a three-digit million to low billion amount of equity (equity) for each investment: “We have a spread of 100 million to 2 billion in equity that we can invest per transaction” , said Advent's managing partner and co-head of Germany, Ranjan Sen, in an interview with the Frankfurter Allgemeine Zeitung (FAZ / Wednesday edition).

Klaus Max Smolka

Editor in Business.

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Financial investors usually take out loans for each takeover that can amount to five to eight times the equity.

Extrapolated to the new fund, the possible volume for individual transactions is in the double-digit billion dollar range, as Sen calculated.

"Then you can imagine numbers between 10 and 20 billion." The new pot of money is expected to feed between 35 and 45 transactions, comparable to the pattern of past funds.

Arguably the second largest fund in the world

The new fund is believed to be the second largest in the world.

When asked by the FAZ, the German industry association BVK provided a list of the largest known funds, according to which only one pot from the financial investor Blackstone from 2019 had a higher volume, namely $ 25.4 billion.

The BVK does not claim to be complete, because North America and Asia funds in particular are not tracked.

But the financial data provider Bloomberg also lists the new fund as number two.

Advent always breaks the in-house record;

the previous fund from 2019 was $17.5 billion.

Venture capital companies solicit commitments from institutional investors such as pension funds for funds that they call as soon as a transaction is pending.

A fund typically delivers no more than a tenth of its volume for a single transaction, which spreads the risk.

40 percent of the investor money in the new Advent fund comes from North America.

According to Sens, future investments should be made in North America and Europe, each with 40 percent.

Advent announced the closing of the fund called GPE X (X as the Roman variant of 10) on Tuesday morning.

It is more than 40 percent larger in volume than its predecessor, Fund IX, and brings Advent's assets under management to more than $100 billion.

The collection campaign illustrates the enormous liquidity that flows to investment companies around the world.

While funds in the double-digit billions still stood out in the noughties, a whole series has become known in recent years.

Large international houses such as Carlyle, CVC, EQT, KKR and Permira can use such pools, and the special investor Thoma Bravo, who has his sights set on the technology sector, has also set up a fund of this size.

Former owner of Douglas

Advent is known in Germany, among other things, as the former owner of the retail chain Douglas and through commitments in the chemical sector, for example in the Plexiglas manufacturer Röhm, which previously belonged to Degussa and Evonik.

Advent is currently bidding for Aareal Bank with the financial investor Centerbridge and the Canadian state pension fund CPPIB.

The 2 billion euro offer was on the verge of success shortly before the acceptance period expired (Tuesday at midnight): As the bidders announced, they had secured 59.66 percent of the shares in the Wiesbaden real estate financier by Monday evening and thus the minimum acceptance threshold of 60 percent almost reached.

Advent has already gained experience with German financial service providers in the form of Concardis and GFKL.