UK-listed buyout firm Bridgepoint Group Plc has secured investor commitments of more than €6 billion ($7.1 billion) at the first close for its latest flagship fund, putting it about 80% of the way to its goal, people with knowledge of the matter said.
The firm, which is seeking to raise €7.5 billion for Bridgepoint Europe VIII, started the fundraising less than six months ago, the people said, asking not to be identified as the information is private. The fund has seen strong demand from existing investors as well as from new investors, driven by an increased interest in European mid-market private equity, the people said.
A spokesperson for Bridgepoint declined to comment.
European funds have seen an uptick in demand as some investors are cutting their exposure to the US given the recent volatility. Still, with investors being laser focused on returns, mid-market firms that have a better chance of exiting assets are finding it easier to raise funds.
Bridgepoint distributed nearly €3 billion from its flagship funds last year, the people said. So-called distributed to paid-in capital -- a measure of how much cash is generated by a fund relative to what's been invested -- is being seen by investors as a key way to evaluate performance and has become a kind of lodestar for the industry, particularly when it comes to fundraising.
The European investor's 2019 Bridgepoint Europe VI fund is expected to reach 100% DPI this quarter, the people said.
The Washington State Investment Board and Minnesota State Board of Investment are among investors in Bridgepoint Europe VIII, according to their investment plans.
QVC Group shares tumbled after the television shopping network outlined plans to file for imminent Chapter 11 bankruptcy as it grapples with viewer declines and a heavy debt burden.
The company and some of its direct and indirect subsidiaries plan to file in the US Bankruptcy Court for the Southern District of Texas, it said in a regulatory filing late Wednesday. QVC also said it expects to enter a restructuring support agreement with certain creditors, according to the filing.
Shares were down nearly 65% at 10:15 a.m. in New York on Thursday.
QVC has faced a slew of challenges, from a shrinking customer base and as of late last year, its ability to continue as a going concern without efforts to address its debt pile. In November, the firm said it was exploring financial and strategic options to tackle its burdensome balance sheet, including a credit facility that matures in October.
In its regulatory filing Wednesday, the company said it's targeting emerging from Chapter 11 within about 90 days. It added that it has incurred "significant professional fees" in preparing for its Chapter 11 and expects to amass substantial further costs throughout the proceedings.
"We cannot assure that cash on hand, cash flow from operations will be sufficient to continue to fund our operations and allow us to satisfy our obligations related to the Chapter 11 cases," it said in the filing.
On a November earnings call, Chief Executive Officer David Rawlinson said the shopping network has worked to reduce its penetration of goods from China and continues to monitor any changes to tariff rates and their impact. The company owns the television channels QVC and HSN, formerly known as Home Shopping Network, which are famous for hawking everything from kitchen appliances to luggage.