Vitruvian closes maiden fund on EUR925m

01 March 2008

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Fund

New mid-market private equity firm, Vitruvian Partners, has closed its maiden fund, Vitruvian Investment Partnership, on EUR925m, exceeding its EUR900m target. The fund has a 10+1+1 structure with a five-year investment period. Terms and conditions are described as industry standard.

The closing of the firm's first fund marks one of the largest spinout funds raised in Europe to date. The personal track records of the managers secured strong limited partner appetite for VIP. Partner Toby Wyles comments: "First time funds pose a challenge, but our team has proved its ability to work well together and complete a large number of successful transactions in the past, which are key factors for a successful fundraising." He also explains that the group has a well-defined investment strategy which also appealed to investors. VIP held a first close on EUR424m in March 2007.

Monument Group acted as placement agent for the fund and Clifford Chance assisted with legal advice.

Investors

The minimum subscription to the fund was EUR10m and it is reported that Harvard, MIT, AlpInvest and Bank of Scotland are investors in the fund. Other notable LPs from North America, Europe, Asia and Australia have also committed capital.

Investments

The vehicle is looking to make investments of EUR15-150m in the IT, media, financial services, leisure and business services sector in the UK and Northern Europe. Attractive targets will be businesses which are going through significant change. During its lifetime, the fund will look to make 12-15 investments.

In December 2007 VIP made its first investment when it backed the £55m recapitalisation of Latitude Group, a UK-based internet search marketing agency, in return for a majority stake.

People

Vitruvian was established in August 2006 by former Apax manager Toby Wyles along with two other former Apax partners, Michael Risman and David Nahama; BC Partners executive Ian Riley and a previous CFO of Bridgepoint, Mark Harford. The five partners are all responsible for managing the fund.

Name: Vitruvian Investment Partnership

Target: EUR900m

Closed on: EUR925m

Focus: Buyout

Contact: Toby Wyles

Address:

Vitruvian Partners

53 Davies Street, London W1K 5JH

Tel: +44 (0)20 7152 6503

Fax: +44 (0)20 7152 6504

Advisers:

Monument Group (Placement agent)