Oakfield Capital Partners, a UK firm focused on investing in small and medium-sized enterprises, has reached a £6 million first close on its maiden fund, according to a statement.
It is understood a total of 30 investors, mainly high net worth individuals, have supported Oakfield’s UK Special Situations Fund, which has a £20 million target.
The firm’s partners will provide 10 percent of the capital in each of the fund’s deals, David Pitman, an Oakfield Partner, told Private Equity International in March. The fund has a minimum subscription of £50,000 and will continue fundraising until the end of September.
“The current financial climate has proved to be a challenging fundraising environment for the private equity sector in general,” Pitman said in the statement.
Oakfield, which was established in 2008, targets small and medium-sized businesses that need “both finance and management support to reach its full potential”, according to the statement.
LPs in Oakfield’s fund qualify for tax relief under the Enterprise Investment Scheme (EIS), which aims to encourage investments in smaller and medium enterprises in the UK. “Many banks are not actively lending to this sector, so the [UK] government is trying to get people to invest in this sector,” Pitman told PEI in March.
Oakfield has five portfolio companies: Coryton, an oil service company; Taylor, a producer of commercial waste bins; Ingresso, an e-commerce company; Jolly Fine Restaurants, a Michelin-starred restaurant group and Secure Parking & Storage, a parking and storage service. It is understood the firm hasn’t made any divestments since its inception.