Englefield raises €1bn for European mid-market

Englefield Capital, a UK-based mid-market firm headed by former Warburg Pincus executive Dominic Shorthouse, has held a final close of its second fund with commitments totalling €1.06bn (US$1.37bn). As with the firm’s vintage 2002 €706m debut vehicle, The Englefield Fund, Englefield Capital II will target European mid-market development capital and buyout opportunities of between €30m and €150m.

Englefield Capital’s sector focus includes business services, particularly outsourcing and recruitment, education, energy, financial services and healthcare.

Like its predecessor, the second fund also received the majority of its backing from Bregal, the investment vehicle of the Swiss-based Brenninkmeijer family, alongside allocations from Axa, Delta Lloyd and 120 individual investors.

Shorthouse said there was no pre-marketing as such for the firm, due to its existing ties with investors and despite only having made two exits: Equity Insurance Group, sold by Englefield and Duke Street Capital in December 2006 for £570m to listed Australian insurer Insurance Australia Group; and TBIH Financial Services, sold for an undisclosed sum in mid-2006.

He said that it was “business as usual” in terms of its deal pipeline.

Englefield’s high-profile advisory board includes Tim Congdon, Sir David Frost, Ronald Frohne, Ed McKinley, Paul Myners, Sir Hayden Philips, Sir John Rose, Lord Robertson and Brian Wilson.