Montagu Capital, part of the newly-independent Montagu Private Equity (formerly HSBC Private Equity – see news this issue) has announced a first close on its Growth Capital fund, following a cornerstone commitment of £25 million from HSBC. The fund has a final target of between £100 million and £125 million and is aiming for a final close by year-end.
Montagu Capital is the successor business to HSBC Ventures, HSBC’s venture capital arm which was folded into HSBC Private Equity last year. Montagu Capital currently has over £30 million of assets and funds under management.
A four-strong team will be managing the new fund including two new recruits from 3i. Andy Leach, managing director , was formerly with 3i Manchester and Martin Green was with 3i Birmingham. Both bring nearly 30 years combined investment expertise. Tom Chaloner has been with the HSBC Ventures business since the mid-nineties and Mahmoud Atalla has also been with the group for several years.
The new fund will be targeting the smaller end of the buyout market and will look at deals requiring up to £10 million of equity. The new fund will also have exclusive access to all relevant deal flow from HSBC for the life of the fund. The team will be looking at deals in traditional industries with strong management and growth prospects.
The fund will operate under the supervision of Montagu Private Equity’s existing infrastructure and its operations will be overseen by its chairman, Phil Goodwin , who is Montagu Private Equity’s Head of UK investment.