Primary Capital, the predominantly UK mid-market private equity fund, has closed fund raising on its second fund at GBP100 million. First closing of the fund at GBP50 million was shortly after its launch in September 2000 and so allowed the Primary Capital team to continue making investments during the fund raising period. Primary Capital’s first fund raising closed in 1997 at GBP61 million. Two more directors, in addition to the six already on the investment staff, will be recruited this year.
Charles Gonszor, chief executive of Primary Capital, says, ironically, since the fund was not marketed to US investors, there are three US investors in the fund at the final close. Each of these was introduced by third parties – Jones Day law firm and Campbell Lutyens, the placement agent that assisted Primary Capital in this latest fund raising.
Gonszor expects the firm’s investment profile to remain similar – with ten per cent to 20 per cent of deal flow coming out of continental Europe.
Primary Capital likes to invest predominantly in old economy businesses with an element of turnaround, which means while benefiting from referrals the firm does not have to compete with other private equity firms for deals.