Inflexion closes double fund, collects £1bn

Alice Murray
01 October 2014

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Inflexion Private Equity has raised more than ТЃ1bn via two funds, Inflexion Buyout Fund IV and Partnership Capital Fund I.

The buyout fund closed on £650m, while the Partnership fund closed on £400m. Both vehicles were raised in just five months without the support of a placement agent.

Speaking to unquote", Inflexion managing partner Simon Turner said the fundraises reflect Inflexion's impressive performance, as all of the GP's funds have been in the top 10% performers for private equity. Turner also believes there is a lot of interest coming from LPs for mid-market investors: "Following the financial downturn, there is an appreciation of a model that can repeatedly create value."

The newly created Partnership fund is the first of its kind in the UK. "It was a very organic development for us," said Turner. "Our track record in this area has been very strong but this is the first time there has been real definition to this kind of strategy in the UK." Turner pointed out that, in the US, growth capital funds make up a core part of investor portfolios. "A lot of US funds combine the buyout and growth strategies and I wouldn't be surprised if we see more people doing it in Europe."

Investors
The vehicles received commitments from both existing and new investors. New investors hailed from the US, Asia and the Middle East. The funds received commitments from a total of 35 LPs, including state and corporate pension plans, insurance companies and sovereign wealth funds.

According to Turner, Inflexion's latest buyout fund benefited from a 90% re-up rate, while the Partnership fund received investment from both existing and new investors.

Inflexion focused on diversifying its LP base during this most recent fundraising process: "We brought in various sovereign wealth funds and more investors from the US and Asia," said Turner.

Investments
Inflexion Buyout Fund IV will continue to follow the stategy of its predecessor funds, providing equity tickets in the £15-75m range.

Inflexion's new Partnership Capital I fund will seek minority stakes in companies, and marks the first fund of its type focused purely on the UK mid-market. The fund is headed by David Whileman, formerly of 3i, who was appointed last year.

People
Simon Turner is managing partner at Inflexion.