Close Brothers Growth Capital (CBGC) has announced a first closing of its second fund Close Brothers Growth Capital Fund II at £50m. The fund has a final target of £100m. All investors from the previous fund have committed to the new vehicle.
CBGC made the final investment from its first fund, Fund I in July, the last of 11 investments made over the past three years. The fund has so far returned over £20m to investors from an original fund size of almost £50m.
CBGC provides both debt and equity financing and invests in any sector where the total funding requirement is between £2m and £25m.
Bill Crossan, managing director at CBGC, said: “We are delighted to reach a first closing on our new fund so quickly and with such strong support from all our existing investors. As the UK’s only established third party fund making integrated finance investments, we are the most differentiated product in the market right now. We have demonstrated in Fund I that, unlike many other private equity funds, we can provide downside protection and an earlier payback of capital while still delivering superior returns through equity upside. We expect Fund II to prove even more successful.”