Flexstone Partners' Mid Market Secondaries III fund has raised €200 million
December 19, 2024
Flexstone Partners announces that it has raised €200 million for its Mid Market Secondaries III (MMS III)1 fund, which was the objective the company set itself when launching this third vintage. The final closing of the fund, which took place on December 19, 2024, represents an important milestone for Flexstone's development strategy. An affiliated asset management company of Natixis Investment Managers, one of the world's largest asset managers with more than $1,427 billion in assets under management2 (AUM), Flexstone is a leading player specialising in investments in the global small and mid cap private assets market and manages or advises more than $10.6 billion in assets3.
The Mid Market Secondaries III fund aims to make around twenty secondary private equity investments in the small and mid cap market, Flexstone's core market. Unlike most secondary funds on the market, MMS III does not use bank debt to finance its acquisitions. It therefore follows the same strategy and the same extremely rigorous investment selection process that made Flexstone's previous funds successful, having achieved returns equal to or even better than expected, while aiming to significantly control risks.
Eric Deram, Managing Partner and CEO at Flexstone Partners, said: "With MMS III, Flexstone is continuing its development in the fast-growing secondary market while capitalising on our small and mid cap expertise in funds of funds, asset management mandates, emerging fund managers and co-investment funds. The fund is already deployed at more than 40% with a good balance between LP-stakes and GP-leds. To date, it has posted a very solid performance4."
Kristof Van Overloop, Managing Director in charge of Secondary Business at Flexstone Partners, added: "Flexstone follows a resolutely differentiated investment strategy by investing only in the attractive and less competitive small and mid market private equity segment. Thanks to our numerous relationships with fund managers active in this segment, we are very well positioned to continue to capitalise on this fast-growing market segment, whether for so-called traditional LP-stakes operations or GP-led continuation vehicle operations."
Flexstone has a strong background in secondary investment in the private equity sector, particularly in the small and midcap segments, its core target. The success of its operations is a testament to the quality of its portfolio and the soundness of its investment process.
Flexstone has completed 70 secondary private equity transactions since 2008. The company has thus demonstrated its ability to generate attractive risk-adjusted returns throughout the various market cycles.