Stonehage Fleming spin-out holds first close – Exclusive

The FPE Capital team spun out the Fleming family office's firm earlier this year and is seeking to raise £100m.

FPE Capital, the spin out from family office Stonehage Fleming, has held a first close on its new fund on £53 million (€70 million; $78 million), Private Equity International has learned.

FPE Fund II, which officially launched late 2015, is targeting £100 million and is aiming to hold a final close by the end of the year, according to sources familiar with the fundraise.

It is understood that Rede Partners is acting as the placement agent for the fundraising.

Both FPE Capital and Rede declined to comment.

Stonehage Fleming was created in November 2014 through the merger of Fleming Family & Partners, an investment office run by the relatives of James Bond creator Ian Fleming, and Stonehage, an advisor, fiduciary and investment manager set up in London by a group of South African families in 1976.

The closing follows completion of the private equity team’s spin-out and rebranding as FPE Capital, as reported by PEI. FPE Capital is majority owned by the private equity team, which continues to be led by managing partners David Barbour and Henry Sallitt, while Stonehage Fleming retains a minority stake.

The latest fund is the team’s first targeting institutional capital. It is understood that the vehicle has attracted a substantial number of commitments from family offices and high net worth individuals who have invested in previous funds of its forerunner, FF&P Private Equity, as well as a mix of funds of funds, endowments and foundations.

FPE Capital, which continues to manage the previous funds of FF&P, will continue with the same strategy, focusing on mid-market growth investments in the UK.

The team is looking to invest equity of between £3 million and £15 million for majority or minority stakes in profitable businesses with a turnover of between £5 million and £50 million, and particularly favours investments in the TMT, financial services, energy services and business services sector, according to its website.