LBO France has just announced that they are looking to raise €1.2 billion for a new fund, LBO France White Knight VIII LP, to follow-up Fund VII which closed at €800 million in 2006. The fund will continue the firm’s strategy of investing in French companies that generate much of their revenues outside of France. Since 1998 funds sponsored by LBO France have generated a 57.5% gross IRR.
The new fund will have a 2% management fee for the investment period, which will be reduced to 0.2% per year thereafter. There will also be a 50-50 split of transaction-related fees between the general partner and it’s investors. LBO France will put in about €40 million of it’s own money towards the fund.