CBPE closes sixth fund

Close Brothers Private Equity has announced the closure of its latest UK mid-market investment fund at £202m.

Close Brothers Private Equity, the private equity investment business of Close Brothers Group, has announced that the CBPE (UK) Fund VI has closed at £202m, of which £90m was committed by first time investors. 

The fund will maintain CPBE's focus on UK mid-market investments in the £10-£75m range. Approximately 40 per cent of the fund has already been committed to nine investments. Over the next 18 to 24 months, CBPE Fund VI will look to invest in a further six to ten similar transactions.

CBPE Director Nick MacNay led the fundraising together with CBPE managing director John Snook. CBPE was assisted by the New York-based placing agent, BerchWood Partners. CBPE received legal advice from Macfarlanes.

Commenting on the announcement, Nick MacNay said: “We are very pleased that Fund VI has been successful in attracting overseas investors in what potentially could have been a difficult market. 40 per cent of the fund has been committed by European and US institutions. In many ways, the closure of the fund means business as usual. We intend to continue with our strategy of investing in business and IT support services, logistics, industrial manufacturing and leisure.”

To date, the fund has invested around £80m of the fund total in nine investments. Investments from Fund VI have included the acquisition of Aroma & Fine Chemicals, Gradus and Park Resorts.

Close Brothers Private Equity was established in 1984 and invests in transactions with a value of between £10 to £75m. During 2000/2001 CBPE invested in deals worth approximately £250m.