CBPE Capital LLP (“CBPE”), the UK- based mid-market private equity investor, has completed the fundraising for its latest fund, CBPE Capital Fund VIII, achieving a final close at £405m.
The fund was launched in Q4 of 2008, shortly before the Lehman Bros collapse and reached a first close of £270m in April 2009. CBPE’s predecessor fund, the £360m Fund VII, was raised in 2004 and became fully invested in 2009.
CBPE received strong support from its existing LPs and also welcomes several new LPs to Fund VIII. In all, the fund comprises commitments from 30 investors.
The investment focus of the new fund will continue CBPE’s established practice of targeting UK-based businesses with enterprise values of up to £150m. CBPE will be looking to deploy around £100m of capital per annum so that the fund is invested over the next 3-4 years.
CBPE’s current portfolio comprises 10 investments made from Fund VII. These include Rosemont, the oral liquid pharmaceuticals manufacturer; Warwick International, the North Wales based specialist chemicals manufacturer; IDIS, the pharmaceuticals distribution businesss; and Energy Cranes, the lifting equipment services provider. Although all headquartered in the UK, these businesses typify CBPE policy of seeking companies with closely defined market niches and often with a significant international element. Many of the past investments have also featured acquisition programmes for the platform businesses. This strategy will also continue with the new fund.
Commenting on the fund close, John Snook, CBPE Managing Partner said: “We are very pleased with this fund raising in such a tough general climate. Investors are understandably cautious about making new long-term commitments in this asset class. We’re grateful for their support for Fund VIII, which we see as a real vote of confidence for the UK mid-market.
Investment volumes are at a long-term low at present, but we believe they will recover significantly over the four year cycle of Fund VIII. Our experience from four previous cyclical low points is that they present great buying opportunities.”