French private equity firms Demeter Partners and Emertec Gestion are set to merge after they signed their merger transaction.
Together they will become the largest European private equity player dedicated to the energy transition, environmental and innovative materials sectors, with over €800 m assets under management and 120 companies financed in 10 years.
Private equity funds of Demeter – Emertec are split in three hubs : innovation, growth, infrastructure.
The merger, subject to regulatory approval, will enable the fundraising of one investment fund per year.
A new seed fund is currently being created and a new growth fund will be launched early 2017, with an objective of €200m with unit investments from 10 to €25m.
By the end of 2017, Demeter – Emertec will manage €1bn of assets.
“Beyond its organic growth, the group aims to become a real platform for consolidation of private equity in Europe in its lines of business, particularly by the merger with other investment structures on key markets,” both firms stated.
Stéphane Villecroze, managing partner of Demeter Partners: “We are pleased to carry out this transaction with the help of Emertec Gestion’s institutional shareholders (BPI France, CEA Investissement, Caisse d’Epargne Rhône Alpes).
“The common values, the mutual trust and the complementary skills of the teams of Demeter and Emertec are key advantages. We are convinced that together we will be stronger to succeed in the next steps of our growth.”
Bernard Maître, chairman of the board of Emertec Gestion: “The obviousness of this merger is due to the strength of our common industrial project: the increase of opportunities and of the amounts raised in our investment sectors, the issues of international expansion, the most complete coverage of the needs in own funds for the companies concerned make a substantial size necessary.
“It reinforces our independence and our attractivity among entrepreneurs and international investors, seeking key players with critical size.”