Evoco raises €162m for Fund III

Evoco has raised €162m to acquire portfolios of companies in the European lower-mid-market, with a particular focus on German-speaking countries.

Evoco, a direct secondaries firm focused primarily on German-speaking Europe, has held final close on its third flagship fund.

The Zurich-headquartered firm has raised €162 million for Evoco TSE III, exceeding its target of €150 million, according to a statement posted on LinkedIn. Limited partners include single family offices, endowments, financial institutions and funds of funds from across Europe.

Secondaries Investor reported in June 2020 that the European Investment Fund is a cornerstone investor and that the general partner committed €6 million to the vehicle.

Evoco acquires portfolios of lower-mid-market companies in the industrials, services and consumer goods sectors with turnover of between €30 million and €250 million. Its average investment size is €25 million to €100 million.

It often employs a fund succession model, co-founder Michel Galeazzi wrote in 2016, buying out departing LPs, injecting money into the acquired assets and taking over management responsibility.

Companies in Evoco’s portfolio include Doo, which develops QR code scanning technology, and reBuy, which refurbishes and sells consumer products and electronics, according to its website.

Evoco was founded by Felix Ackermann, a former investment director with 3i Group, and 3i, Hg Capital and UBS alum Galeazzi.