Elysian III closes on £325m hard-cap

Domiciled in the UK as a UK limited partnership, Elysian Capital III was registered in December 2019 with a target of £300m. It held a first close on £270m in June 2020.

Most of the due diligence meetings regarding the fund were held over Zoom and Teams, according to a statement.

The firm's second-generation fund closed on £250m in July 2015 and was 72% deployed as of December 2019. Its investment period ended in June 2020.

The firm's debut fund is currently in its realisation phase, having made six exits to date. The most recent are the sale of Wellbeing Software Group to trade buyer The Citadel Group for a return of 4.5x money and the flotation of Pebble Group in December 2019, which returned 3.2x money to Elysian investors.

The fund has management, carry and hurdle rates in accordance with market standards, including a 2% management fee and a 20% carry rate.

In conjunction with the fund close, the firm has announced the promotion of Jack Jacovou to partner. He joined the firm in 2009, joining from Smith & Williamson Corporate Finance.

Capstone acted as placement agent for the fund, having advised on the firm's two predecessor funds. Travers Smith provided legal advice.

Investors
The fund has more than 20 existing and new LPs from Europe, the US and the Middle East. Many of the investors have an interest in co-investing alongside the firm, according to a statement. One LP in the fund is the Massachusetts Pension Reserves Investment Management Board, with a commitment of £60m.

The GP commitment to the fund was £26m or 8.6% of the target.

LPs in Elysian II included Hamilton Lane, Morgan Stanley, West Yorkshire Pension Fund and Argentum.

Upon the firm's first close, a source close to the situation said that without Covid-19 the fund could have reached the hard-cap by June 2020, but several investors who would have come in earlier wanted to wait until they saw progress. Those investors later came into the fundraise.

Investments
Elysian III will look to invest £20-40m in UK lower-mid-market companies with enterprise values of up to £100m. The firm has an expected holding period of three to five years.

The fund has an attractive pipeline of new investment opportunities, according to a statement. Investments in the firm's current portfolio include healthcare provider Aspirations Care Group, tourism company Key Travel and waste services company Raymond Brown Minerals and Recycling.

People
Elysian – Ken Terry (CEO).

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