Zeus hits target with £100m first fund

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Zeus Private Equity has held the final close of its first fund on its target of £100m. The Manchester-based fund was launched in April 2006 and held a second close in June 2007 on £65m.

Since the second close, Zeus has completed four deals including the buyout of an online gifting company and an investment in the UK hotel sector. The fund is structured as a traditional 10-year investment fund with a five-year investing period.

Zeus was set up by managing partner Gary Tipper and two partners, all of whom were previously at Aberdeen Murray Johnstone Private Equity. Tipper described the process of raising a first-time regionally-based fund as "not a walk in the park", but commented that "since the credit crunch there has been more appetite from investors because the summer's events demonstrated that there is a place for smaller, more niche funds."

More than 40 private and institutional investors made commitments to the Zeus fund which will focus on investing in companies in the UK regions that have strong regional brands or franchises and are capable of being developed into national businesses. Investing between £5-10m of equity per deal, Zeus will look to acquire portfolio companies with an enterprise value of up to £50m. (Page 05)