NorthEdge hits £300m hard-cap on Fund II

The fund, which was fully allocated at launch, closed after just four months in market.

NorthEdge Capital, a Northern England-focused buyout firm, has closed its second fund on its £300 million (€390 million; $426 million) hard-cap after just four months in market, according to a statement from the firm.

NorthEdge Capital II was fully allocated at launch and received “overwhelming support” from both existing and new institutional investors, the firm said.

The investor base is made up of 18 international investors, including four new LPs, including asset managers, foundations, funds of funds, insurance companies, private and public pension funds, and sovereign wealth funds, with 57 percent of the capital coming from Europe, 37 percent from the USA and 6 percent from Australia.

Investors in the firm’s previous vehicle, the 2012-vintage NorthEdge Capital Fund I, which closed on its £225 million hard-cap in April 2013, include the Iowa Public Employees’ Retirement System, the Public Employees’ Retirement System of Nevada, the West Yorkshire Pension Fund, the European Investment Fund, and the Alaska Permanent Fund, according to PEI Research & Analytics. The firm contributed a 2 percent GP commitment, as reported by Private Equity International.

NorthEdge targets investments in businesses with an enterprise value of between £10 million and £100 million, with a typical transaction ranging from £20 million to £75 million in value. The firm looks to make equity investments to support management buyouts, development capital and equity release strategies, according to a statement from law firm Paul Hastings, which acted as legal advisor for the fundraise.

Fund I has invested more than £180 million in 13 businesses operating in a range of industry sectors, including home furnishings business Arthouse, which it acquired from Total Capital Partners, gym business Total Fitness, and pawnbroker Ramsdens Financial.

“The North of England is now firmly on the map and continues to offer some great investment opportunities from a range of high growth businesses who are looking to broaden their national and global reach,” Grant Berry, managing partner of NorthEdge, said in a statement.

“We remain passionate about targeting dedicated management teams who want capital to maximise the potential in their businesses. In return we bring a positive, creative and straight-talking approach. Crucially, NorthEdge also offers local decision-making. The North is our home and where our network is, and this is where the investment decisions are taken by the partners.”

NorthEdge made several hires and promotions last year. In April the firm promoted finance director Emma Rawlinson to chief financial officer. In August it hired John Rastrick as a partners in its Leeds office, and a month later hired Harry Jones as an investment executive in its Manchester office.

NorthEdge appointed Ian Plumb as portfolio director in September to oversee the progress of the firm’s portfolio, and in October promoted George Potts and James Marshall to senior investment executives.

UBS acted as placement agent on the fund, led by James Moore, global co-head of the private funds group, and executive director Nicolas Wagner. Vicky Mudford Limited provided investor relations advisory services, and Langham Hall will act as fund administrator.