CBPE Capital LLP (“CBPE”), the UK mid-market private equity investor, has completed the fundraising for its latest fund, CBPE Capital Fund IX. Despite significant investor demand, CBPE remained faithful to its £459m hard cap and will continue to focus on its chosen investment strategy.
CBPE has a long track record of successfully investing in the lower mid-market buyout sector, targeting investments in UK-headquartered businesses with an Enterprise Value of £25m to £150m. CBPE takes a disciplined approach to deploying capital, targeting specific industry sub sectors where it can work with management teams to build stronger, better businesses. CBPE typically targets primary buyouts and growth capital situations.
Since it began focusing on investing in lower mid-market buyouts in 2000, CBPE has made 42 investments of which it has realised 30. 12 of these realisations have returned more than 3x capital and four have returned more than 7x capital. Aggregate realised returns are 2.8x capital over the same period.
Fund IX comprises commitments from 20 investors. This includes strong support from existing investors together with commitments from a select number of new, sophisticated international LPs.
The close of Fund IX follows the success of Fund VIII, the £405m fund which closed in 2010. Fund VIII invested in 13 companies of which two, Côte Restaurants and The Original Bowling Company, have been successfully realised generating 2.9x and 2.4x capital respectively. The current portfolio includes energy efficiency solutions provider Anesco, employee benefits consultancy Xafinity and teleradiology provider Medica.
Sean Dinnen, Managing Partner, said:
“We are delighted with the support we have received from investors and grateful for their continued backing. The success we have had in raising Fund IX is testament to our long track record and our proven ability to generate returns for our investors. We are a collegiate firm, and take a highly selective approach to investing. Above all, we are firm backers of outstanding management teams – we think like business owners, not providers of capital. We believe this is what has enabled us to generate consistent returns and build such great businesses over a long period.”
CBPE has already made one investment from Fund IX: ABI, the leading manufacturer of caravan holiday homes.