Mayfair Equity Partners closed its second UK-focused growth fund on its £650 million ($847 million; €745 million) hard-cap, benefiting from recommendations from its existing LPs.
More than 30 percent of new relationships from Mayfair Equity Partners Fund II came from referrals from other LPs, the firm’s managing partner Daniel Sasaki told Private Equity International. Fund II had an 80 percent re-up rate, Sasaki added, with greater participation this time from US investors, compared with its 2016-vintage, £400 million debut fund.
About 40 percent of capital commitments from Fund II came from US LPs, 30 percent from Europe and 25 percent from UK investors, the firm said in a statement.
Sasaki noted that Brexit was a main concern among investors but didn’t loom large in the fundraising process. “Our final closing in Fund I was after the Brexit vote which resulted in lower participation from US investors. Two years on, US institutions have taken a more considered view of what it means to participate in UK private equity and and taken a longer term view of Brexit.”
Approximately 85 percent of the capital for Fund II came from pensions and pension advisors, 10 percent from foundations and family offices, and 5 percent from fund of funds managers.
The London-based firm began raising capital for Fund II in the first quarter of 2018 without any placement agent and without yet having returned exits from Fund I, it is understood.
Fund II will have the same strategy as its predecessor, backing TMT and consumer-focused businesses in the UK. The firm’s current portfolio includes Japanese restaurant chain YO!, digital marketing business SuperAwesome and visual effects company Pixomodo.
Mayfair has also ramped up its headcount in recent months, adding four investment team members and two in portfolio operations. The firm expects to hire three more members in the next few months.