Cabot Square Capital has reached the first close on its fifth fund at £275 million ($432 million; €384 million) and secured commitments that would take it to its £300 million target, the firm said in a statement. CS Capital Partners V has a potential size of £350 million.
Fundraising began in January.
The current fund raising market is polarised, one industry source said. “Funds are either closing really fast, or, they don’t get traction. It depends on the momentum,” the source said.
Cabot Square targets majority stakes in companies in financial services, operating property, and infrastructure, from start-ups, through turnarounds to companies looking for expansion capital, according to its website.
Its previous fund, CSPC IV, a 2011-vintage, £180 million vehicle, was fully invested over an 18 month period, the statement said.
Its acquisitions include Portuguese consumer finance provider BPN Credito, and UK companies LDF, a non-bank lender, car finance businesses Blue Motor Finance and JBR Capital, trade finance provider Henry Howard Finance, and Signature Private Finance.
In the same statement, the firm also announced the promotion to partner of investment directors Tarun Sharma and Richard McDougall and general counsel Lawrence Small.
In February the firm announced it had sold home care provider Signature Senior Lifestyle to its management team for £75 million having taken out £10 million from the business prior to exit, Private Equity International previously reported. The investment in Signature was made through the CSCP II fund, a 2003-vintage, €234 million vehicle, which at the time had two remaining investments.