CBPE holds first close of eighth mid-market fund

20 May 2009

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Fund

CBPE Capital has held a first close for its latest UK mid-market private equity fund, CBPE Fund VIII, on £270m. CBPE VIII has a lifespan of 10 years with a five-year investment period. A final close is expected to take place later in the year at a level similar to the fund's predecessor, CBPE VII, which closed on £360m.

The new fund, which launched in September 2008, is based in London and has a minimum subscription of £5m. CBPE Capital has also contributed an undisclosed sum. Berchwood Partners was the placement agent for the fund and Macfarlanes provided legal advice.

Investors

30% of the of the fund's investors are new, while the remainder come from the firm's existing base of limited partners, which is made up of pension funds, insurers and family offices. 44% of the fund's investors are based in the UK, while 16% are based in the US. In total, the first close has commitments from 17 institutions.

Investments

CBPE VIII will make investments of between £7m - 20% of the fund's value in UK domiciled businesses with an enterprise value of up to £150m. The firm expects to build a portfolio of between 15-18 companies from CBPE VIII, and will consider co-investments.

CBPE Capital predominately focuses on later stage investments in the following sectors: support services, leisure, industrial, transport & distribution, pharmaceutical & healthcare and consumer. The fund's predecessor, CBPE VII, which invested from 2004-2008, has returned 35% of invested capital, with 10 outstanding unrealised investments. Key investments from this fund include Warwick International, Energy Cranes, BWA and Rosemont Pharmaceuticals.

People

A team of six partners and five investment professionals operating from CBPE's London office will manage the fund.

Name: CBPE Fund VIII

Closed on: £270m

Target: £360m

Focus: Mid-market

Contact: Simon Wildig, John Snook, Nick Macnay, Iain Slater, Sean Dinnen, John Fisher

Address: CBPE Capital, 10 Throgmorton Avenue, London, EC2N 2DL

Tel: +44 20 7065 1100

Advisers: Berchwood Partners (Placement agent); Macfarlanes (Legal).