25 July 2019

Paragon closes new € 783 million fund

Paragon, a leading investment firm in German-speaking Europe, is pleased to announce the closing of its Paragon Fund III (“P3”) with capital commitments of € 783 million. Based on strong demand from investors, P3 significantly exceeded both, its initial target volume and the size of its predecessor fund, which closed at € 412 million.

P3 was heavily oversubscribed and attracted significant commitments from existing investors as well as selected new investors broadening Paragon’ investor base and extending relationships in Europe and North America. Investors in Europe, particularly in Germany, remain well represented and the investor base includes renowned institutional investors such as fund of funds, public and corporate pension funds, insurance companies, endowments and family offices.

The new fund will enable Paragon to further capitalize on its position as a leading investment firm in German-speaking Europe focusing on value-oriented control buyouts with enterprise values typically ranging between € 30 million to € 250 million.

Paragon will continue to apply its proven investment strategy targeting investments in attractive mid-market segments and fundamentally sound Mittelstand businesses across Germany, Switzerland and Austria and, selectively, also neighboring countries. The investment firm endeavors a sustainable investment approach and thus integrates environmental, social and corporate governance considerations into the investment decisions and also incorporates these sustainability standards into the management of its portfolio companies.

The Munich based fund is advised by a dedicated team of investment professionals with profound investing and significant operating experience who have demonstrated strong cohesiveness and stability for more than 15 years.

Earlier this week, Paragon announced the new fund’s first investment: pro optik, the third largest optician chain in Germany. The chain currently spans a network of 145 stores in Germany that is built on a successful partnership model, holding its stores as JVs with optitricians or with franchise partners. The product range of pro optik includes both branded designer frames as well as value-for-money private label frames in combination with high-quality lenses, selling around 400,000 spectacles per year. Recently the company added hearing aids to its offering. In 2018, pro optik generated revenues of € 125 million.