Rutland closes Fund III below target

The UK-based turnaround house has collected £263m for its latest vehicle

Rutland Partners, a UK-based GP focused on turnaround investing has held a £263 million final close on its Fund III, according to a statement.

Rutland came to market in February 2013 holding a £147 million first close in January 2014, PEI revealed at the time, but finished its fundraising below Fund III’s £300 million target.

The investors in Fund III come from the UK, continental Europe and North America and include pension funds, fund of funds and family offices, Rutland said.

The firm has already put some of the capital in the vehicle at work; in June it acquired UK electronics retailer chain Maplin from pan-European firm Montagu Private Equity for £85 million.

Rutland’s second fund, a £322 million vehicle that closed in 2006, is fully invested. In October 2013, Rutland sealed its eleventh and final deal from this fund, when it bought Millbrook Proving Ground, a test and engineering technology business for the automotive, energy and defence markets, from General Motors.

The performance of Rutland Fund II, is understood to be “solid”, a source told PEI previously. The firm’s first fund, Rutland Fund I, a £210 million 2000 vintage, returned 2x to investors, according to the source.

LPs that have previously invested with Rutland include Princess Private Equity Holding, West Midlands Pension Fund and Greater Manchester Pension Fund, according to PEI's Research and Analytics Division.

Rutland invests in UK-based businesses with an enterprise value of between £20 million and £150 million. It typically writes equity cheques between £10 million and £50 million.