Lion Capital, the former European arm of US private equity firm Hicks, Muse, Tate and Furst, has reached €1.3bn on its latest fund after almost two years on the fundraising trail.

Lion began premarketing its latest vehicle, Lion Capital III, in late 2009 holding a first close - the point at which a fund can begin investing - at €900m in October last year, according to two investors. Lion declined to comment.