Shore Capital plans third fund

Fundraising will begin at the start of 2002 for what Shore hopes will be its biggest fund to date.

Aiming to create his biggest fund to date, Howard Shore, co-founder of brokerage Shore Capital, will begin fundraising for his third private equity fund at the start of next year, reports eFinancial News.

Shore has set his sights high because of the success of his first fund, Puma I. The net annual rate of return on this fund, which closed at £10m, has been reported to be an impressive 76 per cent. The fund launched in May 1996 and ran until September 2000 when all of its investments were liquidated.

Shore attributes the success of its funds to the fact that private and quoted companies are treated as one and the same, and that just small, fast growth companies with proven management teams in niche markets are backed.

Launched in October 1999, Puma II has raised £42.5m to date, and is between 35 per cent and 40 per cent invested. According to eFinancial News, Shore said the rate of investment will pick up as investors start to emerge from the downturn of recent months.