On Tuesday, June 24, Mandarin Capital Partners signed an SPA for the sale of Italmatch Chemicals to Ardian, the PE firm. Through the sale of the MCP I portfolio company, the fund will achieve an IRR in excess of 40%.  Following this exit (the fifth out of ten portfolio investments), MCP will have returned 108% of the money drawn down from Fund I to LPs. These numbers place MCP amongst the top performers for 2007/8 vintage European mid-market private equity funds.

MCP acquired Italmatch in December 2010 alongside the management team and a co-investing LP.  In 2010, sales were €90 mln and EBITDA €18 mln.  With the help of MCP, Italmatch obtained a license for a new plant in China and completed two acquisitions in Europe, and is now expected to achieve €250 mln in sales in 2014, with an EBITDA exceeding €30 mln.

This transaction confirms the strategy of MCP to invest in strong European companies and to help them grow internationally. This strategy will be continued in MCP II, which did its first investment in the market-leading Italian adhesives company ICF just last week.
Mandarin Capital Partners (“MCP”) is pleased to announce the following developments in relation to their current fundraising and to their existing portfolio of investments:
 
First Close for Mandarin Capital Partners II

On 17 July 2013, the First Close for Mandarin Capital Partners II was completed, for a total amount of €110.5 million.  The bulk of the amount raised was from existing Italian investors in Mandarin Capital Partners I (12 LPs out of 25 of MCP I reinvested in this first round), including Banca Intesa Sanpaolo; a number of bank foundations; pension funds, family offices and entrepreneurs. Amongst the new investors, Roland Berger, a well-known German entrepreneur, will become one of the two Vice Chairmen of the Fund’s Advisory Committee.
 
Further Exits for Mandarin Capital Partners I
  • On July 31st MCP successfully completed the sale of its 70% stake in Gasket S.p.A. - acquired on May 2008 - to Hutchinson SA, a French industrial group. During the investment period, the company was initially impacted by the effects of the economic downturn in Europe but recovered dramatically, particularly from 2011 onwards, as a result of a huge increase in revenues derived from its new China operations in which MCP played a critical leadership role, highlighting its value added contribution.
  • On August 20th, MCP completed the sale of its stake in CIFA, as part of a deal entailing the sale of the 40% held by financial investors (Hony Capital, Goldman Sachs and Mandarin Capital Partners I) to the Chinese industrial shareholder Zoomlion Group. As in the case of Gasket, MCP considers this to be another highly successful conclusion to an investment made in September 2008, which was also impacted significantly by the economic downturn following the Global Financial Crisis. 
  • On  September 1st, MCP sold its entire stake in IMA, investment held through two SPVs financed partly with equity and partly with debt. During the investment period, the company performed a business reorganization and an effective and selective buy & build strategy, which involved MCP with particular regard to the scouting of opportunities in the Chinese market, where an acquisition was performed in early 2013.

With the sale of IMA, MCP managed to perform its third exit in 1-month time
(after the sale of Euticals occurred in April 2012). 
Mandarin Capital Partners II has now achieved a 74% DPI, a significant achievement for a vintage 2007 fund.  

Mandarin Capital Partners, the Sino-European Private Equity Firm which invested a EUR 328 Mio. fund in China and Italy, recently opened an office in Frankfurt, Germany.

In its first fund, which started to invest in 2007, Mandarin Capital Partners made a total of 10 investments in Italian and Chinese companies. Mandarin Capital offers its portfolio companies a unique support in business development from China to Italy and from Italy to China. The experienced teams based in Milan, Beijing and Shanghai work very close together in opening up new business opportunities for their portfolio companies in China and in Europe.

With Mandarin Capital Partners II currently in fundraising, the team decided to expand its business approach to the German speaking part of Europe. To this end, MCP currently opened up an office in Frankfurt, which is headed by Markus Solibieda, a private equity professional with 18 years of experience in investing in mid-sized companies in Germany and Western Europe.

Alberto Forchielli, Founding Partner of MCP comments: “We are very proud having introduced the first Sino-European Private Equity Fund. Based on our successful track-record, our Chinese, Italian and international investors support us in expanding our business model to the largest economy in Europe. We are looking forward to working together with export-oriented German companies, which are champions in their industry and Chinese companies seeking a wider European presence.” 

With the new fund, MCP intends to invest in healthcare, environmental technologies, oil & gas-suppliers, specialty chemicals and specialized industrial companies mainly focused on product safety and energy saving. Since these sectors usually experience a high level of authorization and certification, MCP is ideally positioned to support their portfolio companies based on its credibility and extensive network in the Chinese and the European market.

MCP will be investing in majorities (MBO, MBI) as well as in selected minority positions. Equity tickets will range from EUR 30 Mio. to EUR 50 Mio.

Mandarin Capital Partner is by far the most internationalized China outbound investment platform with European offices in Frankfurt (with sub-office in Munich) and Milan (with sub-office in Bologna) that allow Mandarin to source opportunities in the medium-sized tech manufacturing segment in the most attractive European investment corridor spanning from Florence to Hamburg.

Mandarin CP