Elaghmore Partners has closed its initial fund, Elaghmore I, at GBP60 million and completed its first acquisition.
The fund held a first and final close and is now fully operational. The fund was oversubscribed and the investors are a mixture of US and European institutions.
The investment strategy of Fund 1 is focused on UK-headquartered industrial businesses that present a significant opportunity for growth and value creation.
The partners will participate in every phase of the investment, including turnaround of the business, if necessary, its growth and development, and ultimately ensuring it is well placed to deliver returns for investors.
Elaghmore Partners was advised by London-based Rede Partners, an independent fund raising and secondary adviser to the private equity industry.
Elaghmore has completed its first acquisition through Fund 1: SB Components, a supplier of bespoke components and adaptations for commercial vehicles. Based in Wisbech the company employs 130 people and has sales of GBP17 million.
The acquisition of SB Components follows on from the recent exit of Chaucer Food Group, a specialist food ingredients business, which was sold to Japanese freeze-dried food manufacturer Nagatanien.
Andy Ducker, of Elaghmore Partners, says: “We launched our first fund as a result of considerable institutional interest and were pleased to exceed our expectations to be able to close the fund at GBP60 million, including a significant financial commitment from ourselves as partners.
“We have a clear and defined strategy of aiming to grow and support UK-based industrial businesses and our recent acquisition of SB Components is testament to this. Our extensive experience enables us to not only look at turnaround situations, but also to support management teams in delivering growth strategies for businesses, both on a domestic level and internationally.
“Having exited Chaucer Food Group, the Elaghmore team will now focus on its investment in SB Components and exploring new opportunities for the fund.”