UK private equity investor Sovereign Capital has closed its latest fund, the Sovereign Capital LP III at £120m, twice the amount raised for the second fund. The firm has received commitments to the fund from 20 limited partners, most of which were institutions based in the US such as pension funds and insurance companies.
Launched in October 2000 with a £100m closing target, the fund is targeting opportunities in the UK mid-market across a number of sectors including outsourcing, support services, facilities management, waste/environmental, education/training, healthcare services and leisure.
Sovereign identifies the recent participation in the £20m MBO at Community Homes of Intensive Care and Education (CHOICE), a UK healthcare services company, as typical of its investment strategy. Other investments from this fund include an £8m commitment to Promanex Group to support its first major acquisition in January and fifth round financing to Mortal Man Inns in February worth £5m.
The fund has a further five deals in the pipeline, two of which are expected to close by the end of May. Sovereign managing director Peter Brooks said that these deals would be completed by late May and involved investments in leisure, retail and healthcare.
Brooks said the firm was confident of achieving success with its latest fund: “The mid-market offers increasing opportunities and coupled with current low multiples, there are attractive deals to be done. We look at investment opportunities from the ground up, so the fundamentals have to be right.”