Caledonia to back private qeuity teams

Caledonia, the £850m investment trust, is looking to increase its involvement with private equity with plans to back several management teams within the smaller to mid-market segment in the coming months. Support would be in the form of cornerstone fund commitments and investment in the management firms, as well as infrastructure and access to the Caledonia network across both quoted and unquoted sectors. The group plans to make at least £40m available for this latest initiative. 'We have a successful record as an LP in private equity funds and have also successfully backed asset management businesses in the past', comments John May, a Caledonia director. 'We are now seeking to bring this expertise together and leverage our knowledge. There are a lot of good people out there and we would like to help them grow successful private equity businesses. There are no hard and fast rules for us but we obviously want to back groups which will complement Caledonia's existing unquoted investment activity. We want to focus on finding the right teams in the small buyout and lower mid-market segments and we are also not constrained to the UK. Several groups have approached us in recent months and we have also initiated conversations with a number of management teams'. In the past, Caledonia has invested in funds managed by groups including ISIS Equity Partners (then Friends, Ivory & Sime Private Equity) and Close Brothers Private Equity.

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• Topics
• GPs
• UK / Ireland