Halder invites bids for fund restructuring – exclusive

Halder, a German small- and mid-cap private equity firm, is restructuring its €325 million Halder-GIMV Germany II fund, Secondaries Investor has learned.

Bids on the process were due late last week, according to a market source. Advisory firm Rede Partners is understood to be running the process.

Halder tends to buy majority stakes in small- and medium-sized enterprises with a turnover of more than €400 million, usually through a management buyout. It has raised five funds in all, the first three focused on Germany and Benelux. The most recent two, GIMV Germany and GIMV Germany II, are focused purely on Germany.

GIMV Germany II launched in December 2007 and its reached hard-cap within three months. Due to the financial crisis, its investment period did not begin until 2009 and it did not make its first acquisition until 2011, according to Halder’s website.

According to a fund fact sheet published on the company website, Halder-GIMV II has an investment period of five years with an option for a one-year extension. The fund invests between €15 million and €90 million per transaction and aims to close two or three transactions a year.

The minimum investment is €10 million, while the GP has contributed €20 million. The management fee is 2 percent, carry 20 percent and hurdle 7 percent, with an option for more capital to be raised once 75 percent has been invested, according to the fact sheet.

There were 13 initial investors in the fund including Adams Street Partners and AlpInvest Partners.

Seven assets remain in the fund, according to Halder’s website, including prosthetics manufacturer Amoena, Italian luxury leather goods company BMB, medical precision parts manufacturer Klingel and food manufacturer Wback.

Halder claims to have returned a multiple of 3.3x and gross internal rate of return of 31 percent between 1991 and 2008, the year that GIMV II was launched.

Halder did not return a request for comment by press time. Rede Partners declined to comment.