Private Equity News & Analysis

Rutland targets £300m for successor fund

The firm came to the market in February this year and is expected to hold a first close in late summer, according to sources close to the matter.

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Rutland Partners, a UK-based GP focused on turnaround investing, is expected to hold a first close for its third fund towards the end of the summer, according to sources close to the matter. 

The firm is targeting £300 million, several sources told Private Equity International. It is unclear what the size of the first close will be.  

Rutland declined to comment. 

The firm started fundraising in February, the sources said. The firm’s first fund, Rutland Fund I, a £210 million 2000 vintage, returned 2x to investors, another source added. 

The performance of Rutland Fund II, a £322 million that closed in 2006, is understood to be “solid”. Nine investments have been made from this fund. It is understood the vehicle has enough capital left for one more deal.  

Turnarounds are seen as an attractive bet by LPs, partly due to the current macro-economic features, another source said, adding that non-European LPs in particular are interested in this strategy. “They are looking at Europe as a place where they are more likely to invest in distressed/turnaround deals than in growth deals.”

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.

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