Inflexion Private Equity has held the first and final close of Inflexion Enterprise Fund IV and Inflexion Supplemental Fund IV, securing commitments of GBP250 million for each new fund.
Raised exclusively from Inflexion’s existing LP base of blue chip investors from across Europe, the US and Asia, both funds reached their respective hard caps in a single closing, within just eight weeks of launch. In keeping with previous fundraisings, Inflexion closed on timetable and without the support of a placement agent.
Inflexion Enterprise Fund IV, the fourth generation of Inflexion funds focused on the UK lower mid-market, will follow the same successful strategy employed by Inflexion for over 17 years backing high growth, entrepreneurial businesses with ambitious management teams and working in partnership with them to accelerate growth. The Enterprise Fund will invest equity of GBP10m to GBP20m for majority or minority stakes in established businesses.
The dedicated Enterprise Fund team is led by Tim Smallbone, a longstanding Inflexion Partner and member of its Investment Committee. The Enterprise Fund will invest across all sectors and regions of the UK and all investee companies will have access to the firm’s extensive resources spanning value enhancement, in-house digital expertise, international support offices in Brazil, China and India, as well as its expertise in originating and integrating bolt-on acquisitions.
Inflexion’s Supplemental Fund IV will invest alongside Inflexion Buyout Fund IV, a GBP650 million fund, and Inflexion Partnership Capital Fund I, a GBP400m fund, the pools of capital Inflexion raised concurrently in 2014. The Supplemental Fund gives Inflexion the firepower to co-invest alongside its larger buyout and partnership capital investments.
Simon Turner, Managing Partner at Inflexion, says: “We greatly appreciate the strong support of our investors and can now offer equity investment from GBP10 million to GBP100 million, expanding our coverage of the highly attractive UK mid-market. We are delighted that we can support the widest possible range of high growth, entrepreneurial businesses, offering unparalleled flexibility in the mid-market, combined with genuine support to ambitious teams.”
Inflexion enjoys a strong track record in lower mid-market transactions with highlights in 2015 including the sale of Aspen Pumps generating a 14x return, Reward Gateway which returned 7.7x and the 2014 flotation of FDM Group which generated 16.2x money and a 100% IRR.
Inflexion was advised by Ashurst and Carey Olsen.