NorthEdge hits £125m first close

Kimberly Romaine
10 August 2012

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Manchester-based lower mid-market investor NorthEdge Capital has hit a first close on £125m for its maiden fund, according to sources close to the firm.

The close is impressive not only owing to the extraordinarily difficult backdrop, but also because the firm was set up by former LDC executives with little or no fundraising experience. Andy Ball and Grant Berry, both of LDC pedigree, teamed up with operating specialist Dan Wright to launch the outfit three years ago. LDC's Ray Stenton joined approximately a year later.

NorthEdge, set up in 2009, initially set out to do a £100-200m corporate recovery fund, however changed tack at the turn of 2010-2011. The LDC spin-out attracted nine institutional investors for its first fund, including US-based backers. Management fees are 2%.

UBS is placing the fund, while SJ Berwin is providing legal advice. Augentius is acting as fund administrator.

Investments
The fund will back MBOs and development capital situations. NorthEdge will back businesses with an enterprise value of £10-100m, with a sweetspot of £20-75m and equity cheques of £10-25m.

The fund has not yet made any investments, though a number are believed to be in the pipeline.

People
The four-strong management team is based in Manchester and led by Berry and Ball. The senior team has worked together for more than 16 years. Michael Joseph, also formerly of LDC, is chairman.

NorthEdge declined to comment.