Cairngorm raises GBP 200m for fund III

Back in March this year, Unquote reported that the sponsor was targeting a final close on the hard-cap in July, citing 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 GBP 107.5m in April 2017. Its debut fund closed in 2015 on GBP 74m.

Fundraising for fund III was put on hold as the Covid-19 outbreak spread, and the GP resumed fundraising for a final push towards the hard-cap at the beginning of 2021, Unquote reported in March.

Acanthus Advisers acted as exclusive placement agent, while Fried Frank Harris Shriver & Jacobson provided legal advice.

Investors
The LP base includes European funds-of-funds, US university endowments and charitable trusts.

According to Cairngorm, each of its existing institutional investors increased their commitment for fund III. The vehicle also attracted new investment from a number of north American endowments. A "substantial" investment was made by the firm’s principals.

Investments
Cairngorm aims to make 10-12 platform investments with the new fund. 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 GBP 17m turnover, and also backed UK-based bike manufacturer Whyte Bikes. Overall, it has already made five investments.

Cairngorm invests in private mid-market growth companies with its priority sectors including medical services, building materials, financial services and savings administration, food and drink, and water management. It generally makes majority investments in businesses – often family-owned – with EBITDA of GBP 2m-20m, and has an average holding period of five to eight years. The company has made 35 investments to date.

People
Cairngorm Capital Partners - Andrew Steel (managing partner).

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