East Kilbride-based Clyde Blowers Capital (CBC) is now targeting a first close for its fourth fund in the third quarter, managing partner Keith Gibson told Private Equity International.
The firm had planned to start marketing a £500 million ($712 million; €659 million) successor vehicle last September, as reported by PEI.
The firm continues to invest from CBC Fund III, a £420 million, 2012-vintage vehicle, which was 75 percent deployed in August. “There are a number of things that we are working on and one that has taken longer to come to fruition. The industrial space has had a tougher time,” Gibson said.
Gibson said that in terms of deals, “a couple have fallen away and a couple did not proceed.” In the case of two to three unnamed acquisitions, the vendors have decided not to sell due to their companies’ poor performance and drop in price, Gibson said.
The oil and gas and metal and mineral’s segments have been most affected, he said.
CBC targets majority stakes in mid-sized businesses supporting the power, oil and gas, metal and minerals, petrochemical and water sectors, including aftermarket services. It invests equity cheques of £25-75 million.
Gibson told PEI in August that the “challenges” in the oil and gas sector were providing it with opportunities.
The firm has yet to exit any of Fund III’s investments, which include Finnish mechanical power equipment maker Moventas, US precision motion control technology company Cone Drive Operations, Scottish engineering company CBC Electric Machines Group, environmental consultancy ESI, mining pump manufacturer Keto Pumps and Glasgow-based Ferguson Marine, which designs, builds and repairs vessels serving the oil and gas and renewables markets.
CBC had expected to have sold “a couple” of these stakes by the end of the year but plans have been delayed by a year to 18 months, Gibson said.
Its second fund, which is fully invested, could have just one investment left by the end of the year, Gibson said, declining to identify it.
CBC II, a £250 vehicle raised in 2008, has invested in six portfolio companies, including in Clyde Union Pumps, created out of the merger of Clyde Pumps and Union Pump, and Maag Pump Systems, which it has exited, according to its website.