OCP Special Situations Fund holds first close at £6m

Karin Wasteson
20 May 2013

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Oakfield Capital Partners (OCP) has held a first close at ТЃ6m for its vehicle Oakfield UK Special Situations Fund, targeting ТЃ20m.

OCP started marketing the fund at the end of 2012 and aims to complete its fundraising by the end of September 2013. The fund has a five-year investment period.

The vehicle will allow its investors to qualify for tax relief under the UK government-backed Enterprise Investment Scheme (EIS).

Since the firm was founded in 2008, OCP has invested in five companies, which together employ more than 250 people. To date, OCP has raised £23m to invest in those five investments.

OCP's portfolio includes speciality petroleum producer Coryton, commercial waste bin manufacturer Taylor and e-commerce platform Ingresso.

Investors
The fund expects to attract professional clients, mostly UK taxpayers. However, certain overseas clients who benefit from the scheme will join as well. The minimum subscription is £50,000.

The group that contributed £6m to the first close consists of 30 high-net-worth individuals. The majority are from London, but one or two of these private investors are from overseas.

Investments
Oakfield UK Special Situations Fund will invest £2-5m per transaction in four to eight SMEs which need both finance and management support during a two-year period.

OCP will set aside a maximum 20% of aggregate commitments for follow-on funding.

OCP stated it invests in companies that can be transformed through business improvement, add-on acquisitions and accelerating organic growth, rather than through financial engineering.

People
David Pitman is a partner at OCP.