CBPE hits £400m mark on Fund IX – Exclusive

The UK mid-market firm is defying Brexit uncertainty as it hurtles toward its £425m target.

UK mid-market firm CBPE Capital has amassed £400 million for its latest fund and is expected to hold a final close over the summer, Private Equity International has learned.

Despite the market uncertainty following the UK’s decision to leave the European Union last week, CBPE Capital IX secured a significant commitment this week to bring it to the £400 million (€481 million; $534 million) mark, according to sources with knowledge of the fundraising.

CBPE declined to comment on fundraising.

CBPE began premarketing for the fund, which has a target of £425 million and a hard-cap of £450 million, in the spring of 2015, and sent out the private placement memorandum in May.

The firm held a first close on £175 million in December 2015, and closed on further capital over Easter, as reported by PEI.

CBPE IX is the firm’s second fund since the group spun out from UK investment bank Close Brothers in December 2009. Its predecessor, its first independent fund, closed on £405 million in January 2010 after more than a year in market. 

CBPE has already begun investing Fund IX. Last month the firm acquired a majority stake in caravan and holiday home manufacturer ABI Group from LGV Capital for an undisclosed sum.

CBPE has been fundraising for Fund IX amid a string of successful exits. In April 2015 the firm generated a 22x return on its £9.4 million investment in IDIS, which it sold to AIM-listed speciality pharmaceuticals and pharmaceuticals services business Clinigen in a deal valuing the business at £225 million.

In the same week CBPE agreed to offload its majority stake in UK holiday park owner and operator Away Resorts to LDC, the buyout arm of UK-based Lloyds Bank. LDC said it would be investing £18.5 million in the business, as reported by PEI.

In July CBPE sold restaurant chain Côte Restaurants to BC Partners in a deal generating a 2.9x return and an internal rate of return of 79 percent. The firm had held the business for less than two years, having backed the existing management team led by Harald Samuelsson and Alex Scrimgeour in a transaction in September 2013.