Investors in Botts Capital Partners have finally called time on the private equity fund and instigated a change of management.
After a troublesome few years of poor performance and a string of departures, the fund assets have been acquired by US secondaries specialist Paul Capital. They will be managed going forward by Nova Capital, a London-based interim fund management group.
While no financial information has been released by the parties involved, the deal is thought to be valued at under £100m.
“There had been some pretty serious difficulties with the portfolio and with management and LPs had exerted considerable pressure,” said a source close to the proceedings. “It is pretty rare in the UK for a private equity management company to be replaced at the behest of the limited partners.”
With £250m under management in a variety of vehicles, Botts invested in UK-based mid-market buyout and development capital deals. Valuations ranged between £15m and £150m. The firm focused on deals in the entertainment and leisure, branded goods, industrial products and media sectors.
Among the investments in the portfolio are confetti.co.uk, Noblehouse Leisure, Norcros, Osprey and The Scotsman. Although the group was majority-owned by its partners, Bank of Scotland also had a stake in the management company.
US law firm Weil Gotshal & Manges acted for Paul Capital Partners for the first time.