Growth Capital Partners nears £200m final close – exclusive

The fund, which focuses on UK SMEs, has been in the market since January 2016.

Growth Capital Partners, a private equity firm which makes investments of between £10 million ($12.7 million; €11.4 million) and £50 million in UK-based small and medium-sized enterprises, is set to close its fourth fund on £200 million by the end of the month, Private Equity International has learned.

Fund IV has been in the market since January 2016, according to an SEC filing, and has already made four investments accounting for around 35 percent of the fund. Uncertain market conditions caused by the UK referendum on EU membership had an impact on the length of time spent in market, according to a source with knowledge of the fundraising.

The most recent investment in May was in First Mile, a London-based recycling company for an undisclosed amount.

Atlantic-Pacific Capital is advising on the fundraising, which has seen interest from a mix of old and new investors, the source said.

Investors in predecessor fund, 2012-vintage GCP III, include West Yorkshire Pension Fund, which committed £15 million, European Investment Fund, which committed €40 million, Golding Capital Partners, ACG Capital and Lexington Partners (all for undisclosed amounts), according to PEI data.

Fund III raised £160 million, above its target of £150 million. Remaining assets in the fund include Cooke Optics, a specialist manufacturer of cine lenses and Advanced Insulation, which provides insulation and fire protection products to the oil & gas industry, according to the company website.

Neither Growth Capital Partners nor Atlantic-Pacific Capital wished to comment on the fundraising.