The fourth vintage dedicated to mid-cap buyout operations, managed by Edmond de Rothschild Private Equity and advised by Elyan, has raised more than €500 million, significantly surpassing its predecessor (€300 million). It will invest tickets of €30–60 million across 10 to 15 portfolio companies.
Edmond de Rothschild Equity Strategies IV — ERES IV — ultimately raised €512 million, exceeding its target size of €450 million. This fund, dedicated to the Group’s mid-cap buyout strategy, has substantially outperformed its predecessor, closed in 2016 at €300 million, and now has sufficient resources to invest average tickets ranging from €30 to €60 million (with a minimum of €20 million and a maximum of €100 million) in 10 to 15 companies.
The target for this SLP? Growing businesses, with 40% located in North America, 30% in France, and the remainder elsewhere in Europe—operating in sectors such as biotech services, service digitalization, and those serving “new consumers”, such as affluent seniors adopting new usage patterns. This geographic and sector diversification convinced both historical LPs and new investors.
Jean-François Felix, Managing Partner at Elyan Partners, exclusive advisor to the ERES funds for the Edmond de Rothschild group, its minority shareholder, says:
“Our investment strategy—combining added value, measured leverage (below three times EBITDA), and diversification—has paid off in terms of returns, despite the macroeconomic environment,”
“Added to this, the performance of the ERES III fund—whose IRR ranges between 15% and 18%—helps make the fund attractive both in France and internationally.”
Strong Support from Existing Investors
Launched in early 2021 in a favorable environment, the fundraising was completed in a more turbulent context, but with strong backing from investors already present in the previous fund, who contributed nearly two-thirds of the amount raised. The subscriber base—made up of institutional investors and major French and international family offices—is composed largely of private individuals.
For the first time in its history, the Edmond de Rothschild group opened the fund to third-party distributors (IFAs) and set up two feeder vehicles, in France and Luxembourg, to accommodate this new category of investors—whose smallest ticket is €500,000.
Fifth Investment Underway
Whether taking minority or majority positions in portfolio companies, the Elyan team shows a preference for primary deals and does not shy away from complexity — as demonstrated by ERES IV’s first transaction in France this summer, Oncodesign, where Elyan supported the carve-out and spin-off of an activity, as well as its delisting.
Investors have also completed three additional US investments (Envoy Global, Freightwise, and Hungerrush). Another transaction involving Cheops fell through two days before closing.
Aiming to complete three to four deals per year, Elyan Partners is reportedly finalizing a deal in Germany, with closing expected in the second quarter.