Golding Capital Partners has successfully completed the final closing of the "Golding Buyout Co-Investment 2023" fund. The capital volume of EUR 400 million achieved corresponds to the fund's hard cap. This sum significantly exceeds the volume of the predecessor fund, despite the fundraising environment being described as challenging.
The investor base for the third buyout co-investment portfolio spans nine European countries, with a focus on Germany and Switzerland. Approximately 40 percent of the fund's volume comes from new investors. The range of investors is broad and includes insurance companies, pension funds, professional superannuation schemes, cooperatives, family offices, asset managers, savings banks, and foundations.
The fund is designed to invest in small and medium-sized enterprises alongside established private equity managers. The strategic geographical focus is primarily in Europe, supplemented by selective investments in North America. The focus is on established and resilient growth sectors, including B2B services, healthcare, specialty manufacturing, and technology.
Strategy and portfolio development
The selectivity of the investment approach is based on an extensive transaction pipeline. This results from relationships with leading private equity managers, built since 2000, and from Golding's reputation as a reliable co-investment partner. Since 2015, Golding has collaborated with deal teams to gain access to attractive co-investment opportunities. The "Golding Buyout Co-Investment 2023" represents the third portfolio of this investment strategy, surpassing the predecessor's volume of EUR 273 million.
Vaishnavi Katamreddy, Head of Buyout at Golding, noted that placing the fund up to the hard cap reflects the strategy's successful track record and the quality of the portfolio already built. She explained that Golding intensively examines 30 to 40 transactions out of over 150 co-investment opportunities per year and makes 5 to 8 investments annually.
The fund is classified as an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR). Sustainability aspects are an integral part of the investment process and are considered during the selection and monitoring of investments.
Current portfolio status
At the time of the final closing, the portfolio already comprises ten companies, including a specialist for mobility and parking management, a provider of alarm systems and security solutions, and a service provider for testing, inspection, certification, and compliance services. Two further investments are in an advanced due diligence process. The initial investments are showing positive operational development. Following the full portfolio build-out, the fund is expected to be invested in approximately 30 companies, ensuring diversification across companies, sectors, and regions.
Hubertus Theile-Ochel, Managing Director at Golding, emphasised that the high proportion of new investors represents a strong signal of confidence. Institutional investors sought reliability, access to attractive opportunities, and a partner who consistently selects even in challenging market phases. This co-investment approach leads to a portfolio of companies that benefit from long-term growth trends such as digitalisation, increasing compliance requirements, and outsourcing trends.
