UK lower mid-market player Sovereign Capital has closed its second fund Sovereign Capital Limited Partnership II (SCLP II) above target at £275m, just seven months since its launch in late September. SCLP II had an original target of £200m.
As with the previous fund, commitments to SCLP II come from Sovereign Capital’s existing network of investors in the US and Asia and new European investors, including Access Capital Partners, Danske Private Equity, Nordea Investment Management, Robeco Private Equity and Wilshire Associates Europe.
Like its predecessor, SCLP II will invest between £5m and £20m of equity in UK lower mid-market. The majority of Sovereign’s investments have been made in companies facing succession issues and have all, post-investment, been further developed through a combination of organic growth and focused buy-and-build and roll-out strategies. This strategy will result in investments typically being held for a longer period than the private equity industry average.
Acanthus Advisers LLP acted as placement agent for Sovereign Capital in Europe and Macfarlanes acted as legal advisers.