MML Capital Partners (“MML”) is pleased to announce the successful final closing of MML Keystone I and accompanying co-investment and managed vehicles (together the “Fund”), raising €935 million ($1.10 billion). This landmark fundraise ranks among the largest on record for a new European strategy, according to data from Preqin. Commitments were secured from a globally diverse group of blue-chip institutional investors including pension funds, consultants, asset managers, funds of funds and family offices from Europe, North America, Asia, Australia and the Middle East.

MML Keystone is a differentiated strategy investing at the intersection of private equity and infrastructure in the UK and Europe. It focuses on high-growth asset-backed businesses that provide essential services which accelerate, and benefit from, societal megatrends including the Circular Economy, Energy Transition, Digitalisation, Access to Healthcare and Education. The investments will typically have an equity ticket of €30m to €200m.

Keystone’s founding managing partners Andrew Honan and Sharand Maharaj have worked together since 2010, previously as senior leaders of Macquarie’s $50bn principal investing group. With Keystone, they have built a dedicated team of experienced investment professionals that leverage MML’s long-established platform and strong network in the lower-mid market.

The Fund has already signed six investments, including:

· Global Packaging Services, a global leader in providing reusable packaging solutions on a pooled basis.

· Premier Modular, a leading lessor of modular buildings for essential infrastructure, such as schools and hospitals.

· Waste Vision, the European leader in smart waste management solutions using integrated IoT and software solutions.

· ekeg, the European leader in the provision of leased and pooled re-usable containers for beverage producers.

· Lowe, the global market leader in sustainable refrigeration-as-a-service and associated kitchen infrastructure.

Keystone investments are characterised by strong downside protection, underpinned by infrastructure-like attributes such as leading market positions with high barriers to entry, resilient cashflows linked to essential societal demand and distributed asset profiles. Acquiring these companies in the lower mid-market, the team take a hands-on operational approach that professionalises and scales up the businesses with a proven playbook for systemising asset growth, often enabling exits to infrastructure investors and strategics. The portfolio is already developing strongly under the team’s stewardship, with material increases in revenue and EBITDA.

Andrew Honan, Co-Managing Partner, commented: “Raising over €900 million for a first-time strategy is a strong endorsement of both the team and the Keystone investment approach. We are grateful for the confidence shown by our investors, both those who have partnered with MML for many years and the significant number of high-quality new relationships. The scale and quality of support provide a solid foundation as we continue to build the portfolio, both in making new investments and working with the management of our existing platforms to drive sustainable growth.”

Sharand Maharaj, Co-Managing Partner, added: “We created MML Keystone to invest in a part of the market that is structurally under-served: asset-backed businesses providing essential services with the resilience of infrastructure and the growth potential of private equity. We focus on platforms where value is created through systemised asset growth and operational improvement. The strength of support from sophisticated LPs reflects confidence in that approach. Our priority now is execution: scaling high-quality businesses responsibly to meet long-term societal demand and generate durable, consistent returns.”

Jonty Graham, Partner & Head of IR, said: “MML Keystone I caps off a hugely successful year for MML during which we reached final close on five funds that raised more than €2.4 billion in aggregate. We welcomed over 40 new LPs across several MML vehicles and are very grateful for the trust and support these institutions are placing in us.”

PJT Park Hill acted as global fundraising adviser for MML Keystone I, while Proskauer acted as legal adviser.