PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Cairngorm Capital closes second fund at GBP107.5 million

Cairngorm Capital Partners has closed its second fund – Cairngorm Capital II – at its GBP107.5 million hard cap.

The fund, which was oversubscribed, is now fully operational.
 
Cairngorm Capital has been backed by a consortium of long-term, international institutional investors, consisting of several prestigious European funds of funds and US university endowments.
 
Each of the institutional investors in its first fund increased their commitment to Fund II. In line with Cairngorm Capital’s investment philosophy, a significant investment was made by the firm’s principals.
 
The launch of the second fund continues Cairngorm Capital’s expansion of its business. This follows an intensely active period, which has seen the company complete six investments since July 2016 in its first fund and increase investor support. Ahead of the raising of Fund II, investors in Cairngorm Capital’s first fund, which closed in September 2015 at GBP52.5 million, increased committed capital by 40 per cent to GBP73.5 million, enabling Fund I portfolio companies to pursue a number of bolt-on acquisitions.
 
Now with committed equity capital in excess of GBP180 million, Cairngorm Capital’s investment team is increasing the pace of investment activity, as well as the number of investment opportunities that it evaluates. The fund will invest in well performing, UK headquartered, mid-market companies, earning operating profits of GBP2 million to GBP20 million in manufacturing, distribution and services industries.
 
Cairngorm Capital is interested in firms that can weather economic volatility, have shown consistent historical growth and have significant future growth prospects. A priority is the quality and success of the management team, as Cairngorm Capital builds and realises value through growth and operating improvements, rather than through financial engineering.
 
Cairngorm Capital was advised on its fund raising by Acanthus Advisers.
 
Acanthus Advisers managing partner Wilf Wilkinson says: “Each of Cairngorm Capital’s investors renewed and increased their trust and confidence in the team’s ability to deliver on a distinctive and focused strategy for operational value-creation and growth. Recognition of the sheer strength of the offering that Cairngorm Capital is able to bring to its investee companies is what enabled us to raise Fund II so quickly.”
 
Andrew Steel, managing partner of Cairngorm Capital, says: “Much has been achieved since the launch of our maiden fund 18 months ago. We have built a talented team of investment professionals and operating partners, who together have developed a portfolio of high-quality businesses. Cairngorm Capital team members are working hard with the managers of our portfolio companies to deliver significant success. The possibilities offered by this second fund and by our team’s ability to capitalise on them excite and motivate us. We are grateful for the continued support and commitment of our investors.”
 
Lee Hess, chairman of Cairngorm Capital, adds: “We have built a terrific team and developed a proven investment strategy, generating confidence in our investors and thus, their ongoing support. Although we will be investing a larger fund, we will continue the same disciplined investment selection and thoughtful buy-and-build strategy for our second fund, so that we continue to deliver strong and consistent returns.” 

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured