TA Associates has joined Partners Group to back European property manager Foncia by acquiring 25% stake in the company. Partners Group remains the controlling shareholder.
Founded in 1972, Foncia provides joint property management, lease management, letting and brokerage services to residential property owners and tenants. It also offers diagnostic solutions and B2B property management to business clients.
Partners Group said it has transformed Foncia into a more institutionalized business and has made 260 acquisitions since its investment in 2016. It has also started the company’s digital transformation through the in-house development of a new ERP software.
Foncia now employs 12,000 people across 600 branches and manages a portfolio of 2.5 million individual residential units across France, Germany, Switzerland, Belgium and Luxembourg. The firm is expecting a pro forma sales of €1.25bn by the end of 2021.
Kim Nguyen, partner and co-head private equity services at Partners Group, says, “When we invested in Foncia, our vision was to transform the Company into the tech-enabled forerunner in property management services. In just five years, we have grown Foncia into the leader in Europe through an acquisition-led strategy, and have significantly invested in its technological capabilities to build a business that is becoming the reference point in terms of service quality and efficiency.
We have laid the foundation to secure the long-term future of Foncia, and, as such, are of the firm belief that the Company has compelling growth and value creation potential ahead. With this reunderwriting, we look forward to supporting Foncia through its next stage of development.”
Switzerland-headquartered Partners Group said last month that it raised $6bn for the final close of its fourth flagship direct equity fund, and another $9bn through related private markets programmes and bespoke client solutions that will invest alongside the fund.
TA Associates closed its fourteenth flagship fund on its $12.5bn hard cap and TA Select Opportunities Fund II on its hard cap of $1.5bn in June.
It sold its stake in real estate investor Exeter Property Group to fellow private equity major EQT in a $1.87bn deal in April.
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