Exclusive: Pollen Street targets £350m for latest fund

The Lindsey McMurray-led firm renamed itself last year following its spin-out from RBS

Pollen Street Capital, a UK-based firm, is preparing to raise £350 million for its next financial services-focused fund, PEI has learnt.

The firm has already begun to speak to investors and is currently drawing up its private placement memorandum, according to a source familiar with the matter.

It is understood Pollen Street has hired Park Hill Group to help with the fundraising. Both Park Hill and Pollen Street declined to comment.

The firm, which was renamed from SOF Investments, spun out from Royal Bank of Scotland in November 2013. Pollen Street typically invests in businesses with an operational value of between £200 million and £500 million, writing equity tickets of between £20 million and £70 million.

The firm is currently managing a £300 million fund which it raised in 2014 to acquire four assets from the RBS Special Opportunities Fund, a £1.1 billion fund it managed prior to the spin-out, a source familiar with the matter told PEI last year.

These assets include Shawbrook Bank, a British bank; Target Group, a software provider for financial services businesses and Banca Sistema, an Italian bank. Pollen Street’s recent fund can only be used for further investments in these assets and cannot make new investments from this vehicle, the source added.

The firm’s most recent transactions include the sale of Moneycorp to Bridgepoint in an exit worth £212 million and the add-on acquisition of Freedom Finance, an unsecured lending broker in the UK by its portfolio company Target Group.

Pollen Street is led by Lindsey McMurray, who led the team that managed the Special Opportunities Fund within RBS. She also spent six years as a partner at Cabot Square Capital, focusing on operating investments in real estate and other asset backed investments, together with investments in the financial services sector.