CBPE IX races toward target – Exclusive

The fund, which officially launched last May, is expected to reach its £425m target by the summer.

UK mid-market firm CBPE Capital is well on its way through its latest fundraising and is expecting to hit its target for Fund IX by the summer, Private Equity International has learned.

CBPE began premarketing for CBPE Capital IX, which has a target of £425 million (€539 million; $614 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 further capital over Easter, according to a source with knowledge of the fundraising.

CBPE declined to comment on fundraising.

CBPE IX is the firm’s second fund since the group was 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 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 Cote 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.

In December the firm acquired occupational health services provider OH Assist from Atos IT Services UK for an undisclosed sum.