CBPE Capital LLP (CBPE) has held the final close of its latest fund, CBPE Capital Fund X at its hard cap of GBP561 million, surpassing its target of GBP525 million.
The Fund is the successor to CBPE Capital IX, which closed in August 2016 with capital commitments of GBP459 million, and will be CBPE’s third fund as an independent GP having completed a buyout from Close Brothers Group in 2008.
This successful fundraise enables CBPE to continue its disciplined and consistent investment strategy. CBPE targets investments in UK head-quartered businesses with Enterprise Values between GBP25 million and GBP150 million, focusing on primary buy-out and development capital investments in specific sub-sectors. CBPE partners closely with management teams to enhance the businesses and to pursue tailored plans to accelerate growth.
CBPE received strong support from existing investors, with over 75 per cent of commitments from returning investors. The balance of the capital came from a select number of new, sophisticated international investors. The investor base, which is entirely institutional, includes public and private pension funds, fund-of-funds, insurance companies, endowments and foundations.
Investors in the Fund were attracted to the long-term commitment CBPE has shown to its investment strategy and to the compelling returns that this has generated. Since the firm began investing in lower mid-market buyout transactions in 2000, CBPE has made a total of 52 investments. Of these, 40 have been realised, delivering aggregate realised returns of 2.8x invested capital.
The closing of the Fund is the latest success for CBPE in a busy year to date. The exits of ABI in February and of SpaMedica in April were the first two realisations from Fund IX and delivered aggregate returns of 4.9x invested capital. CBPE’s current portfolio of investments includes a number of resilient and growing companies including Xceptor (process automation software for blue-chip financial services clients), Blatchford (manufacturer of some of the world’s most advanced lower limb prosthetic technology) and Rodericks (an expanding group of dental practices across the UK).
Eleanor Mountain, Partner and Head of Investor Relations at CBPE, says: “We are delighted with the support that we have received in the raising of Fund X, which is a testament to the team’s proven ability to generate consistent returns for our investors. We appreciate the high level of support from our existing investors, and would like to welcome our new investors to the fund.”
Sean Dinnen, Managing Partner of CBPEm says: “CBPE is looking forward to deploying Fund X. We have a long term, demonstrable track record of building great businesses, while delivering returns for investors. We continue to see excellent opportunities in our target market, and we have the right team to capitalise on them.”
Rede Partners acted as global placement advisor and Macfarlanes acted as legal advisor for the fundraise.
