August Equity, a UK lower mid-market firm, is close to wrapping up fundraising for its third fund, according to several sources familiar with the matter.
The fund, which came to market late last year with an £180 million target, is oversubscribed and will reach its £200 million hard-cap in the next month.
August Equity declined to comment on fundraising.
The firm held a £100 million first close in July. Since then, the fundraising accelerated, according to one of the sources. It is understood that of those existing investors who were able to continue investing in private equity, all increased their commitments. August has also attracted a number of international blue-chip investors that are new to the firm.
The London-headquartered firm has already made two investments from its new vehicle. Earlier this month, it acquired The Old Deanery Care Village, an Essex-base dementia care home provider. In July, the firm invested in education provider Minerva Education.
It is understood August has a very strong deal pipeline and was therefore able to give LPs “clear visibility” on where the fund will be invested, the source said. Additionally, August’s performance has been good, according to the source.
August Equity Partners I, a $294 million, 2001-vintage fund, generated a 3x return for investors, a source told PEI in July. Its Fund II, a £155 million, 2008-vintage, has so far made two exits that have repaid half of the commitments, the source said at the time. The firm hasn’t made any further exits, but it is understood the valuation of Fund II has risen consistently quarter by quarter.
August invests between £10 million and £25 million in UK-based companies. While the firm is sector- agnostic, it tends to operate in the healthcare, technology, and support services space.
August will become the latest UK-based firm to have had a successful fundraise. In September, Graphite Capital held a £475 million final close for its eighth buyout fund. In August, Synova Capital closed its oversubscribed Synova Capital Fund II on £110 million. In July, Dunedin reached its £300 million hard-cap for its Fund III, exceeding its £250 million target.