CBPE Capital, a UK mid-market private equity firm, has held a £270 million first close for its eighth fund, which already has over £300 million in commitments. A final close is expected later this year. Berchwood Partners is serving as placement agent.
CBPE Capital (CBPE) today announces that it held a first close for its eighth UK mid-market private equity fund at £270m in early March. Since the first close, further approved commitments have taken the total to over £300m. A final close will take place later in the year.
CBPE commenced its fund raising programme in September 2008 and is pleased with the level of commitments, considering the difficult market conditions. In total the first close has commitments from 17 institutions.
CBPE currently has a portfolio of eleven investments. CBPE Fund VI, invested from 2000 to 2004, has generated cash realisations equal to 4.2x invested capital to date with one remaining unrealised investment. CBPE Fund VII, invested from 2004 to 2008, has already returned 35% of invested capital, with ten outstanding unrealised investments. CBPE Fund VIII will target private equity investments in businesses with an enterprise value up to £150m.
Nick MacNay and John Snook managed the fundraising programme with assistance from placing agent, Berchwood Partners. The final closing for the Fund is expected to be at a similar level to the £360m predecessor Fund, CBPE VII.
John Snook, CBPE’s Managing Partner, commented: “This is a very pleasing result considering the state of the market. We have proven that we can invest in difficult times in the past and we’re keen to get the new fund to work as quickly as possible. Conditions like this suit our approach – we’re very happy to put time into developing opportunities that need effort and creativity to get them to completion and deal flow is picking up.”
• CBPE invests in private equity transactions with an enterprise value of up to £150m. It predominantly focuses on investment in the following sectors:
– Support services
– Transport & distribution
– Pharmaceutical & Healthcare
• Founded in 1984
• 7 previous funds managed
• Investment focus:
– UK mid market
– Management centric opportunities
– Enterprise values £20m – £150m
– Equity investment size of up to £70m per transaction
• CBPE Fund VI – £202m fund closed 2001.
– Cash returned 4.2x capital invested to date
– One unrealised investment.
– Key investments from Fund VI:
– Minova International
– Moody International
– Park Resorts
– V. Holdings
• CBPE Fund VII – £360m fund closed date 2004.
– Cash returned 0.35x capital invested to date
– Ten unrealised investments
– Dec 2008 valuations, 1.2x invested capital
– Cash returned 0.54x capital invested prior to 2008
– Three investments made in 2008 held at cost
• Key investments from Fund VII:- Warwick International
– Energy Cranes
– Rosemont Pharmaceuticals
Fund VIII facts
• 10 year conventional LP structure
• Investor profile
– US – 16%
– UK – 44%
– European – 40%
– Follow-on investors % = 70%