Scottish mid-market private equity firm Clyde Blowers Capital is planning to begin fundraising for its fourth vehicle in mid-September, CBC managing partner Keith Gibson told Private Equity International.
The new fund will target £500 million ($777 million; €708 million) and pursue the same strategy as its previous vehicle, making equity investments of £25 million to £75 million, Gibson said.
CBC Fund III, a £420 million 2012-vintage vehicle, is more than 75 percent committed, Gibson said. Its investments include Finland’s Moventas OY, Cone Drive, CBC Electric Machines Group, ESI, Keto and Fergusons, according to CBC’s website.
CBC seeks majority stakes in mid-sized industrial businesses that offer technology and services, including aftermarket, to the power, oil and gas, metal and minerals, petrochemicals and water sectors, according to its website.
“One thing we have never struggled with is deal flow, the question is what we pick. We see a lot of opportunities in the oil and gas sector due to the challenges there,” Gibson said, noting that the sectors it specialises in all have cycles. “We are at the picks and shovels end,” he said.
The firm targets companies with platform or consolidation potential and scope for operational improvements, which it can expand globally or into emerging markets. To that end, CBC has a small team in China that supports its portfolio companies with operations in south east Asia.
CBC IV will have a similar investor profile to its previous vehicle that drew commitments from US and European institutions, including large endowments and pension funds, Gibson said. The firm has also held discussions with a number of Asian and Middle Eastern investors.
Investors in CBC III include the University of California Regents Endowment Fund and SL Capital Partners, according to PEI’s Research and Analytics division.