Close Brothers Private Equity has closed its seventh fund at £360m, this is a considerable increase on its sixth fund, which went out with a target of £200m and closed almost two years to date on £202m. That fund was a considerable increase on the fifth fund, which raised £110m in 1997.
Close Brothers Private Equity focuses on the UK mid market and its seventh fund raising, aided by Birchwood, the New York-based placement agent, significantly expanded the firm’s continental European and US institutional investor base. This grouping now excesses the firm’s UK-based source of institutional funds.
Significant investors in this seventh fund include AIG Global Investment Corp, AlpInvest Partners, Danske Private Equity Partners, JP Morgan Fleming, Lockheed Martin Pension Fund, New York State Teachers Retirement Fund and Scottish Widows.
John Snook, managing partner of Close Brothers Private Equity, noted that the mid market nature of the fund appealed to investors and he found that investors due diligences processes have altered since the firm’s last outing. Namely wanting to meet the whole investment team, rather than just relying on senior members as in the past.
Prior funds, including fund six, from time to time sought co-investment from their institutional investors, but Snook feels this is less likely for fund seven, given its increased firepower.