Henderson Private Capital, the private equity arm of Henderson Global Investors, has invested £12m in Mega Radio Holdings of Germany.
The investment is the fourth made by Henderson's European fund, Henderson European Partners 1, and the first made by the fund in Germany.
Mega Radio will operate the first national commercial radio network in Germany. Its subsidiaries have licences in six German states, reaching 80 per cent of the population with its broadcasting.
The fund was established to take advantage of buyout and consolidation opportunities in Europe, focusing primarily on the UK, Italy and Germany. It has been investing since July and will be officially launched on September 18.
Previous deals made by Henderson European Partners 1 include London-based serviced office provider Corpnex (formerly Nexus), American industrial conglomerate Mark IV Industries and Media Partners, an Italian sports rights marketing company.
Henderson Private Capital partner Jonathan Agar says: “There is huge potential for national broadcasting in Germany and we are delighted to support Mega Radio. They offer us an exciting opportunity to invest in an unrivalled network. This is an area that we expect to grow significantly, reaching levels of spen-ding similar to those in markets with longer established commercial radio.”