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FF&P Private Equity raises over GBP47m at first close of its third private equity Club fund

FF&P Private Equity, the private equity business of Fleming Family & Partners, has announced the first close of its third Club fund, FF&P Investor 3 LP, giving the firm additional capital of over GBP47 million to invest. The funds have been raised from 56 private and a single institutional investor and include funds provided by Fleming Family & Partners and its clients.

The new funds will be invested into growth companies by way of development capital or smaller buy-outs.  The fund will make individual equity investments in the range of between GBP3 million and GBP10 million.
 
Investors in the fund will also have the opportunity to invest alongside the fund.   
 
FF&P PE has funds under management of approximately GBP200 million  and  current portfolio companies include OKA, the home furnishing business; Harvest Media, the interactive media services provider to shows including X-Factor and American Idol; Defaqto, the leading UK independent financial product research company; and Ikon Science, the oil software and services business.  
  
The fund will remain open to new investors for up to a further 12 months.
 
FF&P Private Equity believes that valuations have stabilised since early 2009, and remain significantly below the pre-credit crunch highs of summer 2007.  At the same time, debt has become harder to find for growth companies, creating an attractive market opportunity for providers of development capital which will support growth.  In the near term low valuation levels on AIM will continue to impact values for private companies. 
 
David Barbour, Co-Head of FF&P PE, says: “This is a uniquely interesting time in the cycle to be investing in small to mid-sized companies.  Private equity funds which have invested in economic downturns, as in 1991-93 and 2000-03, have historically produced superior returns.  We see some really attractive opportunities, for companies that need expansion capital, amongst distressed sales by conglomerates, for sound businesses with inappropriate capital structures and amongst consolidators in unfashionable sectors.”
 
Henry Sallitt, Co-Head of FF&P PE, adds: “Not only does the Fleming Family & Partners network give us a strong proprietary deal flow, it also gives us access to a broad range of successful entrepreneurs and business people who have relevant commercial expertise, access to capital and valuable industry knowledge and networks, all of which can be enormously valuable to portfolio companies.
 
“Many of our investors want to be actively involved and our co-investment structure gives them an additional opportunity to do so. We are pleased that many investors in our earlier Club funds have wanted to remain involved but also pleased that we have extended our reach into a substantial group of new investors, bringing with them a range of new contacts and networks.”  

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