Investment firm Ardian raises $3.2bn for sixth co-investment fund

Global private investment house Ardian has raised $3.2bn for its sixth-generation co-investment platform, Ardian Co-Investment Fund VI.

This figure includes commitments and mandates from Ardian Customized Solutions, representing a 23 per cent increase compared to the previous Co-Investment Fund V raised in 2019.

The new fund attracted 188 investors from Europe, the Americas, the Middle East and Asia.

Read: Ardian, Saudi’s PIF to buy 37.6% stake in Heathrow, Ferrovial keeps 5%

Also read: Qatar Investment Authority to be anchor investor in Ardian Semiconductor

Investor base for Ardian fund

The investor base includes pension funds, high-net-worth individuals (HNWIs), insurance companies and sovereign wealth funds. Furthermore, there has been significant growth in interest from HNWIs in this latest generation.

Fund VI continues the firm’s strategy of providing access to minority investments in companies alongside top-tier private equity sponsors.

The strategy benefits from Ardian’s scale, expertise, and local presence, with general partners (GPs) often inviting Ardian to co-underwrite transactions.

The fund’s investments are diversified across strategies, industries, company sizes, GPs, and geographies, including North America, Europe and Asia.

The investment firm leverages its market-leading Secondaries and Primaries platform, one of the largest in the world, to source deals through its global network of over 600 GPs.

Key investments made so far

The fund is already 40 per cent invested across 18 transactions.

Important investments include Potter Global Technologies, a manufacturer of fire and life safety equipment in the US, in partnership with KKR, and Schwind, a provider of eye laser systems, alongside Adagia Partners.

Alexandre Motte, co-head of Co-Investment and senior managing director at Ardian, said: “This successful close for our sixth-generation platform is a testament to our strong track record in delivering returns from co-investment and the attractiveness of the asset class for stable returns, especially in a challenging macroeconomic environment.

Investors are drawn to the diversification and cost advantages of our strategy, which offers exposure to a well-balanced portfolio alongside some of the best GPs in the world. As the co-investment market continues to grow, strong interest in this latest fund from institutional investors and HNWIs looking to capitalise on diversification is not surprising.”

Patrick Kocsi, co-head of Co-Investment and senior managing director at the investment firm, added: “As private markets mature and deal sizes grow, GPs increasingly turn to professional co-investors for equity in their deals, regardless of geography. This is particularly true in North America, where Ardian’s leading Secondaries and Primaries platform supports our proven track record of identifying top-quartile deals from US and Canadian GPs.

“This exceptional deal pipeline allows us to select high-quality assets and GPs, generating robust and stable returns for our limited partners. We have seen a growing number of compelling deals since our previous fund generation and expect these opportunities to increase not only in Europe but also in North America.”

In other news, Abu Dhabi Catalyst Partners (ADCP), a joint venture between Mubadala Capital and Alpha Wave Global, announced a strategic investment in Ardian’s Secondaries Fund IX  in February. As part of the partnership, Ardian, which already has a presence in ADGM, will scale its team within the market.