UK buyout firm NBGI Private Equity has held a first close on its second fund at £62.5 million ($127 million, €92 million).
It has already secured underwriting from its parent, National Bank of Greece, for the fund’s entire £100 million target, but it is looking to diversify its investor base ahead of the final close.
NBGI’s Mark Owen said: “Our parent house [merchant bank NBG] has underwritten the fund and will be a cornerstone investor with £50 million committed. We are seeking to raise half the funds from outside parties but we are in the unique position of having all funds available even if we do not attract full fundraising.”
The fund will buy companies ranging in size from £5-50 million – the same area of the market where NBGI’s first fund successfully operated.
To date this fund has made a 76 percent internal rate of return. It has achieved a cumulative 6.9 times money multiple from the sale of six of the 13 companies it has bought since 2000. This corresponds to a 2.5 times return across the whole fund.
The £135 million IPO of Superglass in July 2007 and the £50 million secondary sale of Nationwide Autocentres in February 2006 both made over 10 times returns.