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Isis closes latest mid-market fund at GBP235m

Isis Equity Partners, a UK lower mid-market private equity firm, has announced the close of the Isis IV fund at GBP235m, having raised the ceiling from its original target GBP200m in order

Isis Equity Partners, a UK lower mid-market private equity firm, has announced the close of the Isis IV fund at GBP235m, having raised the ceiling from its original target GBP200m in order to accommodate strong investor demand. The Isis team committed a further 1.5 per cent, bringing the total fund size to just over GBP238.5m.

Isis IV has attracted commitments from investors in Europe, the US and the Asia-Pacific region, including insurance companies, family offices, funds of funds and pension funds Acanthus Advisers in London acted as placement agent for the fund.

The Isis team, led by the firm’s partners who have worked together since 1999, spun out from F&C Asset Management in June 2005. Since 1999 Isis has backed 38 businesses and achieved 23 exits. Isis IV is the first fund it has raised as a fully independent firm.

Isis III, a 2003 vintage fund raised whilst Isis Equity Partners was still part of F&C, is fully invested, and had a realised return of 3.2 times and a gross internal rate of return of 82 per cent at the end of June. Since July 2006 the firm has fully or partially realised four investments, including a secondary management buyout of Americana that achieved a capital multiple of eight times and a gross IRR of 149 per cent.

Like its predecessor, Isis IV will focus on the lower end of the mid-market, investing between GBP6m and GBP20m in companies with an enterprise value of between GBP15m and GBP75m. One investment has already been made from the Isis IV fund in the healthcare sector.

Isis Equity Partners focuses on the business services, financial services, consumer markets, IT and media, and healthcare and education sectors. It has a regional footprint in the UK and says it embraces an active portfolio management style in conjunction with an innovative approach to direct origination.

‘It is gratifying to have achieved our primary objective of a diversified global investor base for Isis IV, our first fully independent fund since the spin-out in 2005,’ says managing partner Wol Kolade. ‘We are delighted with the confidence that investors have shown in us.’

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