ZPE, whose three investment partners are formerly of Aberdeen Murray Johnstone Private Equity, is focused on investing in companies based in the UK regions that have strong regional brands or franchises and are capable of being developed into national businesses. The typical target company has an enterprise value of up to £50m, requiring an average equity investment of between £5m and £10m.
The firm has completed two deals already, having funded a new company set up to carry out a buy and build strategy in the UK regional hotel sector, and taken a majority stake in Morecambe-based online floral and gifting company,
Commenting on the close, managing partner, Gary Tipper, said: “Over the last few years, we have seen many lower and mid-market firms move on to bigger deals as they have raised larger funds. This left a gap in the market for an operator who is solely focused on deals in the sub-£10 million equity space, presenting a significant market opportunity and explaining why our fund was so attractive to institutional investors.”