FPE Capital seals pre-spin out last deal

The new firm is currently targeting £100m for its first institutionally-backed fund.

Stonehage Fleming spin-out FPE Capital has made its last investment from its legacy fund programme with the acquisition of UK internet service provider Optimity as it continues to raise funds for a new vehicle.

The firm has acquired a “substantial stake” in the fast growing London-based fixed-wireless provider alongside the management team. It is understood to be the last from its existing programme, FF&P Investor III and Special Situations III.

FPE is raising its first vehicle targeting institutional capital. FPE Fund II launched in late 2015 and is targeting £100 million ($141 million; €126 million). It held a first close on £53 million in May, as reported by Private Equity International. The new fund has attracted family offices and high net worth individuals who have committed to FF&P Private Equity funds, as well as funds of funds, endowments and foundations.

FPE is understood to have invested £5 million in Optimity, which is at the lower end of its investment range of £5-15 million. It targets growth investments in mid-market businesses in the UK with a turnover of £5-50 million.

“FPE will be working hand-in-hand with the management team to maintain high revenue growth, whilst allowing the company to invest in accelerating the expansion of its fixed wireless network and managed services,” it said in a statement.