Private equity house Penta Capital has closed its first fund, Penta Fund I, at £130m (E208m).
Investors in the fund include Bank of Scotland, Old Mutual, Northern Rock Plc and Fortis Bank SA/NV. The fund will typically invest £1m-£20m in UK and Irish mid-market companies with an emphasis on the leisure, support services and IT & communications sectors.
Penta Capital has also established a Network Fund, a vehicle for a select number of its contacts across preferred sectors to invest alongside Fund I. The contributors to the Network Fund are entrepreneurs and senior businessmen who can add value to Penta's investment process.
Steven Scott, director of Penta Capital, said: “As a first time fund, we are very pleased to have attracted these major international financial institutions as investors. We have focused on a small group of substantial investors with whom we can build mutually beneficial, long-term relationships. We also believe that the Network Fund will improve the quality of our deal flow and investment process, ultimately leading to higher returns for our investors.”
Since its formation, Penta has invested in four transactions investing over £21m. These include the MBO of McLaren Consulting, an e-business solutions provider, as well as investments in Transrent, a commercial truck trailer rental company and Datacare Software Group, a leading Irish based provider of corporate records management software.
Five former Royal Bank Development Capital managers set up Penta Capital up last summer. Its brief is to invest in all types of later stage private equity transactions, including MBOs, MBIs, platform investments and development capital. The company is based in Glasgow and employs six investment executives.