Cairngorm eyes £200m final close in July

Georgina Barnard
26 March 2021

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UK-based sponsor Cairngorm Capital Partners is targeting a final close for its third fund in July at a hard-cap of £200m, according to managing partner Andrew Steel.

The fund was launched in late 2019, according to Unquote Data. At the time, the GP was reported to be in talks with a similar set of investors to the ones committed to its previous vehicles. The fund's predecessor, Cairngorm Capital Partners II, reached a final close on £107.5m in April 2017.

Fundraising was put on hold as the Covid-19 outbreak spread, and the GP is now resuming fundraising with a final push to close in July.

Cairngorm aims to make 10-12 platform investments with the new fund, Steel said. The vehicle inked its first deal shortly after launch, when Cairngorm acquired builders' merchant Grant & Stone and its e-commerce subsidiary Trading Depot in late 2019.

Most recently, the GP acquired a majority stake in the MBO of Bromborough Paint & Building Supplies, a UK-based paint distributor with a £17m turnover, and also backed UK-based bike manufacturer Whyte Bikes.

Cairngorm invests in private mid-market growth companies in the manufacturing, distribution and services industries. It generally makes majority investments in businesses – often family-owned – with EBITDA of £2-20m, and has an average holding period of five to eight years, Steel said. The company has made 31 investments to date, he added.