Inflexion Private Equity has closed its fourth enterprise fund at a hard cap of 250 million pounds (about $360 million). Also, the UK firm closed its fourth supplemental fund at the same hard cap amount. No placement agent was used for either fund. Inflexion Enterprise Fund V will focus on the UK lower mid-market while Inflexion Supplemental Fund IV will invest alongside Inflexion’s fourth buyout fund that closed at 650 million pounds (about $936 million) and Inflexion’s initial partnership capital fund that raised 400 million pounds (about $576 million).
Inflexion Private Equity today announces the successful first and final close of Inflexion Enterprise Fund IV (“the Enterprise Fund”) and Inflexion Supplemental Fund IV (“the Supplemental Fund”), securing commitments of £250m for each new fund.
Raised exclusively from Inflexion’s existing LP base of blue chip investors from across Europe, the U.S. and Asia, both funds reached their respective hard caps in a single closing, within just eight weeks of launch. In keeping with previous fundraisings, Inflexion closed on timetable and without the support of a placement agent.
Inflexion Enterprise Fund IV, the fourth generation of Inflexion funds focused on the UK lower mid-market, will follow the same successful strategy employed by Inflexion for over 17 years backing high growth, entrepreneurial businesses with ambitious management teams and working in partnership with them to accelerate growth. The Enterprise Fund will invest equity of £10m to £20m for majority or minority stakes in established businesses.
The dedicated Enterprise Fund team is led by Tim Smallbone, a longstanding Inflexion Partner and member of its Investment Committee. The Enterprise Fund will invest across all sectors and regions of the UK and all investee companies will have access to the firm’s extensive resources spanning value enhancement, in-house digital expertise, international support offices in Brazil, China and India, as well as its expertise in originating and integrating bolt-on acquisitions.
Inflexion’s Supplemental Fund IV will invest alongside Inflexion Buyout Fund IV, a £650m fund, and Inflexion Partnership Capital Fund I, a £400m fund, the pools of capital Inflexion raised concurrently in 2014. The Supplemental Fund gives Inflexion the firepower to co-invest alongside its larger buyout and partnership capital investments.
Simon Turner, Managing Partner at Inflexion commented: “We greatly appreciate the strong support of our investors and can now offer equity investment from £10m to £100m, expanding our coverage of the highly attractive UK mid-market. We are delighted that we can support the widest possible range of high growth, entrepreneurial businesses, offering unparalleled flexibility in the mid-market, combined with genuine support to ambitious teams.”
Inflexion enjoys a strong track record in lower mid-market transactions with highlights in 2015 including the sale of Aspen Pumps generating a 14x return, Reward Gateway which returned 7.7x and the 2014 flotation of FDM Group which generated 16.2x money and a 100% IRR.