Private investment firm Ardian has successfully raised a record €3.2 billion for its sixth-generation Expansion Fund, known as Ardian Expansion Fund VI (AEF VI). This fund will primarily focus on equity investments ranging from €50 million to €300 million in private mid-sized businesses.

The fund has attracted around 200 limited partners (LPs), with approximately 80 being returning investors from the previous fund, AEF V. These returning LPs contributed nearly half of the total capital raised, increasing their commitments by an average of 13%. Additionally, AEF VI has welcomed nearly 120 new investors, including over 50 first-time clients of Ardian.

Geographically, AEF VI has garnered a diverse group of investors from 28 countries, with significant contributions from regions such as MENA, the Americas, Asia, the UK, the Nordics, and the Netherlands. Notably, there has been an increase in commitments from pension funds and private wealth investors, with the latter now making up 25% of the fund’s LP base, up from 16% in AEF V. This group includes 33 CEOs and senior management members from previous Ardian Expansion portfolio companies.

Currently, AEF VI has deployed 33% of its capital, completing eight transactions in leading companies across various sectors. Ardian is known for its innovative approach to sharing value, distributing a portion of capital gains to employees of its portfolio companies upon exit. To date, 81% of the companies in the Expansion portfolio have benefited from this initiative, with 8,000 employees receiving a share of capital gains across 20 exits since AEF III. Under AEF VI, it is expected that an average of 250 employee shareholders per investment will benefit from this program.

The announcement of this fundraising comes shortly after Ardian closed its first private equity Continuation Fund for Syclef, a prominent European firm specializing in refrigeration and air conditioning systems. Ardian's Expansion team initially invested in Syclef in 2020, aiding in its market consolidation and international expansion through mergers and acquisitions. The firm will continue to support Syclef in its next growth phase.

In summary, Ardian's successful fundraising for AEF VI highlights its strong investor base and commitment to supporting mid-sized businesses while promoting employee participation in capital gains. The fund's diverse LPs and strategic investments position it well for future growth and impact in the private equity landscape.