Successful first closing XL fund at EUR 500 million
Gimv announces today the successful first closing of the XL fund at EUR 500 million. The XL fund, which has been initiated by Gimv, focuses on growth companies with an enterprise value between EUR 75 and EUR 750 million. These companies typically show healthy activity and have the potential to expand their business from the Flemish to the international market. Because of its high importance to the Flemish economy, the fund is also backed by the Flemish Government.
XL gets started with a capital of EUR 500 million. As a sponsor and cornerstone investor, Gimv brings EUR 250 million into the fund. The Flemish Government contributes as a co-sponsor another EUR 250 million. This capital contribution will be made through Gimv’s reference shareholder VPM. The fund seeks to raise additional capital with other institutional investors before the end of 2009.
The XL fund plans to invest in 10 to 15 companies from various sectors in the next five years. The amount of each investment may run to EUR 100 million, either as equity or semi-equity. The fund takes a long-term approach to investing and therefore aims at a horizon of 7 to 10 years for each investment. The fund will have its own dedicated team that can count on the support of all specialist Gimv teams.
Koen Dejonckheere, CEO of Gimv, comments on the XL fund: ”Today there is an obvious need for capital with the larger growth companies in Flanders. From its long term vision and its experience as a company builder, Gimv wanted to meet this need. In line with its current activities, Gimv therefore founded a fund for larger investments in these companies. Thanks to the XL fund these companies will be able to continue and accelerate their growth strategies. In the current difficult and insecure market circumstances, Gimv and the Flemish Government have found in each other a strong partner. Gimv is delighted that the Flemish Government invests EUR 250 million in the XL fund. We are convinced that this initiative will turn out to be a winning combination both for Gimv and the Flemish Government, as well as for the bigger growth companies in Flanders.”
It is not Gimv’s first time to manage a fund like XL. The Biotech Fonds Vlaanderen, a venture capital fund of the Flemish Government for investments in biotech companies, is also managed by Gimv. In 2007, Gimv and Dexia founded DG Infra+, an investment fund focusing on infrastructure projects,. Finally, Gimv is already operating many years on the German market through the Halder-Gimv Germany Fund.