Unigestion reaches first close on €200m for third direct private equity fund

Unigestion, an independent, specialist asset manager, has held the first close of its third direct private equity fund on €200m.

This vehicle comes just one year after its predecessor, which closed in 2021 on €600m.

The fund, Unigestion Direct III, targets global mid-market companies. It claims to give investors exposure to hard-to-access companies in areas uncorrelated to GDP. These include healthcare, service efficiency, future of work and sustainable cities.

Unigestion has already tapped the new fund to invest into an unnamed American substance use treatment business. The second deal, which will close soon, will be into a European pharmaceutical company.

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Fund III is compliant with Article 8 of the EU Sustainable Finance Disclosure Regulation, which promotes environmental and social characteristics of investments.

Due to this, most of the portfolio companies will make a positive contribution to at least one of the UN’s sustainable development goals.

Its investment process leverages a machine learning tool called Pepper (Private Equity Predictive Performance).

The firm claims the tool can quickly spot potential underperformers and identify companies that are better able to deliver high returns.

Unigestion head of private equity Christophe de Dardel said, “We have built a strong track record of investing in mid-market companies over the past 25 years, targeting businesses that are often below the radar of other investors. We are delighted to have achieved the first close of UD III and make our first investment.

“In this environment, our strategy allows us to source resilient companies which have strong cash flows, low leverage and high pricing power thanks to their leading positions in niche sectors. Guided by our investment themes, our portfolio is designed to deliver robust underlying growth and thus attractive returns to our investors, irrespective of macroeconomic conditions.”

Source: AltAssets

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