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 ТЃ200m, 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.