The Paris Private Equity team supported Capital Croissance in its concurrent fundraising of its CAIRN Capital II and K2 Business Club funds for a total of close to €350 million. Capital Croissance secured the support of more than 200 private investors and is launching K2 Business Club, a new long-term private equity program.
The fund structuring team, led by Goodwin partners Arnaud David and Sarah Michel in Paris, advised Capital Croissance in the fundraising for CAIRN Capital II for a capitalization of €140 million. This club of entrepreneurs, without peer on the small-cap market, consists of 90% longstanding investors who have once again pledged their confidence (such as Bpifrance and ARDIAN), some hundred new private investors, and a new institutional investor, LGT.
CAIRN Capital II will pursue the same investment strategy as the previous fund has implemented since 2013, namely to finance capital reorganization operations (MBO, OBO, MBI, etc.) and development capital for profitable growth SMBs with €5 to €75 million in turnover, as a reference shareholder (majority or minority). The unit investment tickets for this new vehicle will be between €5 and €15 million. The main novelty of this second fund is a successful prolongation of the fund’s duration to 13 years, with the possibility of an extension to 15 years.
Concurrently with fundraising for CAIRN Capital II, Capital Croissance is launching K2 Business Club, an unprecedented and innovative long-term private equity program financed by 13 families that aims to deploy approximately €200 million. This “family club” aims to provide long-term support (up to 15 years) for 5 to 6 growing SMBs or mid-market companies, primarily family businesses, that will enable them to scale up.
The goal of K2 Business Club is to identify SMBs and mid-market companies present on segments with strong long-term prospects (sustainable food, green business, luxury, logistics, etc.) and support them, without time constraints in their deployment and transformation projects (digital, international, etc.). This tool, unique on the private equity market, exemplifies benevolent and responsible family capitalism that seeks to encourage French success stories.The Goodwin team advising Capital Croissance comprised partner Arnaud David and associate Xavier Couderc-Fani for fund structuring component, and partner Marie-Laure Bruneel and associate Paul Fournière on the tax aspects.