Leeds-based turnaround specialist Endless has held a £525 million (€664 million; $823 million) first and final close on its fourth fund, according to a statement from the firm.
The fund, which came to market in September, had an initial target of £400 million (€506 million; $627 million) but the firm managed to raise more than twice the size of its £220 million (€278 million; $345 million) predecessor, bringing the firm’s total funds under management to around £1 billion (€1.26 billion; $1.57 billion).
Endless was unavailable for further comment at press time.
According to the firm, the “vast majority of existing investors have also committed to the new fund” on the back of strong returns from the previous fund. More than 50 percent of the investor base is made up of educational endowments, family offices and charitable foundations, and the largest single investor in the fund is the Endless team itself.
“It is important for our team and a motivating factor that the investment profits we distribute to our investment partners are used to fund education and charitable projects, medical research and workers' pensions all over the world,” Endless said.
Founded in Leeds in 2005, Endless targets special situations, the acquisition of non-core businesses, investments in turnarounds, financial restructurings and challenging management buy-outs.
The firm said it would continue to invest in companies with turnover between £10 million and £500 million, making the majority of investments in the UK and a small number elsewhere in Europe. Endless will continue to invest “on an entirely discretionary basis”, funding transactions from its own resources without the need for bank debt, and carrying out its own due diligence. Fund IV is available to invest immediately and is able to fund transactions up to £80 million, Endless said.
The firm had a busy 2014 doing deals valued at nearly £150 million. In October Endless acquired business supplies provider office2office in its first public to private transaction, which it merged with existing portfolio company Vasanta Group to form EVO Group, which has a turnover of £660 million, according to the firm.
Endless was also active on the exit front and in July it sold bathstore, a specialist bathroom retailer, after boosting sales 30 percent and improving EBITDA by £5 million, netting the firm a 5x return. The previous month Endless sold St Neots Packaging Limited, a designer and manufacturer of packaging solutions with a turnover of £37 million, to Coveris, a business backed by Sun European Partners.