BEX could secure one-and-done fundraise with latest flagship

Predecessor vehicle Fund IV is over 75% invested and has a TVPI of 1.5x, according to documents prepared for a US state investor.

BEX Capital’s latest flagship fund could be heading for a one-and-done raise.

The Nice-headquartered secondaries firm is heading for a first close this summer for BEX Fund V, according to documents prepared for Wyoming State Treasurer’s Office.

The documents show the vehicle is targeting between $800 million and $1.2 billion although they stipulate “the target and hard-cap are not explicitly defined”. The vehicle did not have a stated hard-cap as of April.

However, according to a source familiar with the raise the firm is targeting a fund size similar to its $765 million prior vintage BEX Fund IV. Fund IV closed at the beginning of 2022 surpassing its $600 million target, according to Secondaries Investor data.

BEX has said that if the fund reaches $800 million at the time of its first close it will hold a final close, the documents detail. “This is believable, as prior funds have closed within 2-3 months”, Wyoming’s documents note.

Investment consultant RVK has recommended Wyoming State Treasurer’s Office invest up to $125 million into Fund V.

BEX focuses exclusively on acquiring LP interests in private equity funds of funds, secondaries funds and co-investment funds primarily in the US and Europe. The firm targets funds that have exited their investment period and that are not generally tail-end positions.

The firm will make a minimum commitment of 1 percent of the fund size, the documents show. It will charge a 1.5 percent management fee based on commitments, which will reduce to 0.15 percent after the later of the third anniversary of the commencement date, or the fund’s three-year investment period. BEX will receive carry of 15 percent if it reaches a 7 percent preferred return. Carry will increase to 20 percent once investors have received a net multiple of 1.8x, according to the documents.

The firm’s $365 million BEX Fund III, which closed in 2019, has recorded a TVPI of 1.8x, a DPI of 0.1x and an IRR of 28 percent, while its €120 million 2016-vintage BEX Fund II has a TVPI of 3x, a DPI of 1.7x and a 26 percent IRR, the documents show. Fund IV, which is over 75 percent invested, has a TVPI of 1.5x.

As the firm’s fund size has increased, so too has its average committed capital per investment. Fund II made an average €22 million ticket to deals it backed. That ticket size moved to $86 million for Fund IV.

BEX declined to comment on the fund documents and the fundraise.

This year, BEX completed a succession process almost a year after its founder and managing partner Benjamin Revillon passed away due to illness. Four of the firm’s partners – Youssef Kameche, Thomas Carbonel, Alexis Ferrer and Stephane Chevrier – now own 100 percent of the firm’s management company after a management buyout in which they acquired Revillon’s share.