PE team spins out of Fleming family office – exclusive

FPE Capital is also in market targeting £100m for a new fund, looking to access institutional capital for the first time.

The private equity team of family office Stonehage Fleming has completed a spin-out, rebranding as FPE Capital, Private Equity International has learned.

The new firm will be majority owned by the private equity team, which will continue to be headed by managing partners David Barbour and Henry Sallitt. Stonehage Fleming will retain a minority stake.

“We are delighted to be launching FPE Capital with the existing team and the support of our existing investors, together with maintaining an ongoing association with Stonehage Fleming and the extensive network that brings to our business,” Barbour told PEI.

FPE Capital is currently in market seeking £100 million ($152 million; €137 million) for a new fund and is understood to be looking to access institutional capital for the first time. It will continue to manage the previous funds of FF&P Private Equity, which count FF&P clients, family offices and high net worth individuals as investors.

FPE Capital declined to comment on fundraising.

The firm will continue with the same strategy, focusing on mid-market growth investments in the UK. The team is looking to invest equity of between £3 million and £15 million for majority or minority stakes in profitable businesses with a turnover of between £5 million and £50 million, and particularly favours investments in the TMT, financial services, energy services and business services sector, according to its website.

“We continue to believe that the investment opportunity at the smaller end of the UK lower mid-market remains compelling with a significant number of high-growth and profitable companies seeking capital to help them accelerate their growth plans,” Barbour said.

Stonehage Fleming was created in November 2014 through the merger of Fleming Family & Partners (FF&P), an investment office run by the relatives of James Bond creator Ian Fleming, and Stonehage, an advisor, fiduciary and investment manager set up in London by a group of South African families in 1976.