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Electra Partners raises new fund providing EUR1bn investment firepower

Electra Partners has announced the final closing of a GBP100m fund raised to invest alongside the capital of its principal client Electra Private Equity, in private equity opportunities ma

Electra Partners has announced the final closing of a GBP100m fund raised to invest alongside the capital of its principal client Electra Private Equity, in private equity opportunities mainly in the UK and Western Europe.

Following this fundraising, which was conducted in-house, Electra Partners expects to have EUR1bn to invest over the next few years and take advantage of investment opportunities when market conditions improve.

This fund will complement the investment activities of Electra Partners in the private equity sector, which concentrate on mid-market buyouts but also encompass other private equity investments such as development capital, mezzanine and real estate. Typical investments range from GBP20m to GBP70m in transactions with an enterprise value of between GBP50m and GBP300m.

‘Raising this new fund marks an important step in our return to the investment market,’ says Electra Partners’ David Symondson. ‘We are now well positioned to be an active player in the mid-market buyout sector over the coming years.’

Recent transactions by Electra Partners on behalf of its clients include the USD2.5bn sale of Dakota Minnesota & Eastern Railroad to Canadian Pacific Railroad, realising USD72m, 20 times the original 1986 investment, a USD556m refinancing of Allflex last August, and the GBP246m buyout of Kingfield Heath, an office supplies supplier in the UK and Ireland.

Electra Partners, which had more than GBP1bn in funds under management at the end of last September, has invested more than GBP3bn in private equity investments over the past 15 years. Electra Private Equity, which has been active in the sector for more than 30 years, has achieved an annualised return on equity of 22.6 per cent over the five years to the end of September.

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