August Equity returns to market with Fund IV – Exclusive

The firm has added ex-Bridgepoint dealmaker Tim Thomas to its investment bench as it seeks commitments to its latest vehicle.

UK-based lower mid-market firm August Equity is seeking commitments for its fourth fund, Private Equity International has learned.

It is understood that August Equity Partners IV has begun fundraising, looking to collect a similar amount as its predecessor, which closed on its £200 million ($285 million; €263 million) hard-cap in early January 2014.

August declined to comment on fundraising.

Fund III came to market in late 2012 with a target of £180 million and held a first close in July 2013 on £100 million. Investors in August Equity Partners III include Partners Group, JP Morgan Asset Management, Merseyside Pension Fund, Akina, and Coller Capital, according to PEI Research & Analytics. 

It is understood that Fund III has made nine investments so far and is just over 75 percent allocated.

On Monday the firm announced it had appointed Tim Thomas as a director in its investment team. Thomas, who was previously a partner at Bridgepoint Development Capital, the small-cap arm of pan-European buyout house Bridgepoint, will focus on new investments, looking for new opportunities in the technology services, healthcare and education, and business services sectors.

Prior to Bridgepoint, Thomas held roles at RJD Partners and Hermes Private Equity. He began his career as an accountant at Pricewaterhouse Coopers, before working at Prudential and KPMG Corporate Finance.

“August Equity is staying true to its strategy of investing in businesses in markets we know well and where we can build scale using prior investment knowledge,” Tim Clarke, a partner at August Equity, said in a statement.

Investments in Fund III include Essex-based dementia care home provider The Old Deanery Care Village, education provider Minerva Education, and Wax Digital, a UK cloud provider of eProcurement software.

The firm’s debut fund, August Equity Partners I, a $294 million, 2001-vintage fund, generated a 3x return for investors, as reported by PEI. Its second fund, a 2008-vintage, closed on £155 million.

Thomas’s hire follows the appointment of Kate Beck as a director in September. A Doughty Hanson alumna, Beck joined August after seven years at Darwin Private Equity to work on portfolio performance and reporting.