London-based Bowmark Capital, a mid-market private equity firm, has raised 600 million pounds for its fourth fund. Bowmark Capital Partners VI will focus on mid-market companies that include technology-enabled B2B service companies. The fund’s investors include pension funds, insurance companies, funds-of-funds, financial institutions, endowments, foundations and family offices. Campbell Lutyens was the financial adviser on the fundraising.
Bowmark Capital, the mid-market private equity firm, today announced the closing of its new fund, Bowmark Capital Partners VI, having reached its target of £600 million in just 10 weeks. The fund is 60 per cent larger than Bowmark’s previous £375 million fund, with 94 per cent of the capital committed by investors in its prior funds.
The significant investor demand, and the speed with which the fund was raised, belied the concerns raised in some quarters that institutional investment in the UK would be impacted negatively by Brexit uncertainties.
Bowmark Capital Partners VI was supported by 23 institutional investors, with 44 per cent of the capital coming from Continental Europe, 35 per cent from North America, 5 per cent from the UK and 16 per cent from other countries. Overall, pension funds committed 33 per cent and insurance companies 26 per cent, with 19 per cent coming from funds-of-funds, 12 per cent from other financial institutions and 10 per cent from endowments, foundations and family offices.
The fund will continue Bowmark’s proven strategy of active investment in growth-oriented mid-market companies, typically with enterprise values of up to £200 million, including technology-enabled B2B service companies and businesses with potential for both domestic and international growth.
This latest fund-raising follows a highly successful 12 months for Bowmark, during which it has invested in ASK4, the leading internet solutions provider, LOD, the fast-growing alternative legal services provider, and The Instant Group, a global leader in independent workspace solutions. During this period, it has also successfully realised investments in Law Business Research, the legal data and research provider, and Nexus, the UK’s leading corporate vehicle rental provider, as well as continuing to strengthen its growing investment team.
Charles Ind, managing partner, commented: “We are immensely grateful to our investors for the confidence they have placed in us, and for their hard work in enabling the fund-raising to be completed so efficiently.
“The success of the fund-raising demonstrates that the UK remains an attractive market for private equity, notwithstanding current Brexit uncertainties. It is also a validation of Bowmark’s growth-oriented investment strategy and focus on long-term value creation, which have delivered exceptional returns across multiple economic cycles.”
Campbell Lutyens acted as exclusive financial adviser on the fund-raising. Stephenson Harwood acted as UK legal adviser and Pepper Hamilton as US legal adviser.