Lyceum’s first fund since MBO

Lyceum Capital has reached a final close of its new fund, Lyceum Capital Fund II, at £255m, more than 25% over its target of £200m. This is the firm’s first fund since it gained independence in May 2006 from WestLB when it was known as West Private Equity.

The fund will invest, alongside management, in mid-sized UK-headquartered service companies.

Since it gained independence two years ago, Lyceum has completed 16 acquisitions (2 new platform acquisitions and 14 add-on acquisitions) and successfully exited four investments – realising an aggregate £216m for investors in addition to earlier realisations of Southern Cross and Asquith Schools for £225m.

The new fund attracted investment from 22 institutions and family offices in the UK, US and continental Europe, including AXA Private Equity, GIMV, AP2, AlpInvest, F&C Group and EIF. Six of the investors were in Lyceum’s previous fund and 16 are new investors.

Philip Buscombe, chief executive of Lyceum, said: “We are pleased to have exceeded our fundraising target with the continued support of current investors and a number of leading private equity investors from the UK, US and Europe who are investing with Lyceum for the first time. We are seeing an increased flow of opportunities and continue to enjoy strong support from our banking partners. “

Since 2000, Lyceum Capital has consistently used consolidation strategies to accelerate the growth and development of leading mid-market service companies, primarily headquartered in the UK, acquiring some 43 companies in healthcare, education, outsourcing, social housing services, technology and industrial services.

Atlantic-Pacific Capital acted as placement agent for the fundraising, Macfarlanes provided legal assistance and PricewaterhouseCoopers financial assistance.