UK-based Oakfield Capital Partners has reached a first close of its UK Special Situations Fund with firm commitments of £6 million. The fund invests in SME businesses which need both finance and management support to realise their full potential. Oakfield will continue fundraising until the final close of the fund at the end of September.
Oakfield Capital Partners (‘OCP’), a private equity firm specialising in investing in small and midsized British businesses (‘SMEs’), today announces the first close of its UK Special Situations Fund with firm commitments of £6 million.
Achieving a successful first close will enable OCP’s UK Special Situations Fund to invest in SME businesses which need both finance and management support to realise their full potential. Oakfield targets SMEs whose potential has not been realised and which qualify for tax relief under the Government-backed Enterprise Investment Scheme (‘EIS’). New investments will join OCP’s existing stable of five companies in which it has invested since the firm was founded in 2008.
Commenting on the first closing of the Fund, OCP Partner David Pitman said: “We are delighted to have reached the first close of Oakfield’s UK Special Situations Fund with commitments of £6 million. The current financial climate has proved to be a challenging fund raising environment for the private equity sector in general. We are pleased to welcome new investors to Oakfield and look forward to continued investment in good quality SMEs –a vital part of the British economy.”
To date OCP has raised £23m to invest in its five investee companies. By adding management expertise as well as money the performance of those businesses has improved rapidly – as has the numbers of staff they employ.
Oakfield will continue fundraising until the final close of the fund at the end of September. The minimum subscription is £50,000.
Notes to Editors:
Oakfield Capital Partners (OCP) is a private equity company, formed in 2008, which specialises in investing in small and midsized businesses in the UK. OCP aims to achieve significant capital gains by providing equity capital and management support to unlock potential. OCP employs a low-leverage, operationally-led approach to private equity investment.
1. OCP’s four Partners have over 50 years of combined experience in senior financial and operational management roles within a range of both privately-owned and publicly-listed companies. Unusually, the Partners and their colleagues may become executive directors of their investee companies to help their management teams grow their businesses, and they invest their own capital alongside their investors’ funds.
2. Over the past five years OCP has invested in five companies which together employ over 250 people. Despite the current difficult environment for SME fundraising, with OCP’s help those companies have raised £23m of debt and equity.
OCP’s portfolio of companies includes:
· Coryton – speciality petroleum products
· Taylor – commercial waste bin manufacturers
· Ingresso – e-commerce platform
· Jolly Fine Restaurants – Michelin-starred restaurant group
· Secure Parking & Storage – parking/storage service.
3. Under the Government’s Enterprise Investment Scheme, investors get 30% income tax relief on their investment, exemption from Capital Gains Tax, relief against losses, and shelter from inheritance tax. EIS reliefs mean that higher rate taxpayers have net of exposure of only 38.5p for every pound invested. The OCP UK Special Situations Fund has a minimum subscription requirement of £50,000.
4. Electronic images of David Pitman of OCP, and stock shots of OCP’s investee companies, are available on request from Attila Consultants.