Sovereign Capital, the UK mid-market private equity provider, has recapitalised two portfolio investments, enabling it to return capital to limited partners in Sovereign Capital Limited Partnership I, a £120 million (€174 million; $214 million) private equity fund closed in April 2002.
Sovereign was able to distribute the cash after refinancing portfolio companies C.H.O.I.C.E., a residential healthcare provider first backed in February 2002, and SEAND, a special needs school operator that received funding in March 2003.
Sovereign invested approximately £18 million of equity capital in the two businesses. According to a press release, both investments have been fully repaid, generating an internal rate of return of 77 percent.
Sovereign’s equity holdings in the two businesses have not changed as a result of the recapitalisations.
The firm said Sovereign Capital Limited Partnership I is currently just under 70 percent invested in a portfolio of assets that is on average 12 months old.
London-based Sovereign currently manages £175 million on behalf of 20 institutional investors. The firm invests up to £15 million of equity in transactions at the smaller end of the UK mid-market. It specialises in outsourcing, support services, facilities management, education/training, healthcare services, leisure and waste/environmental.