Lyceum Capital has announced the final closing of its new fund, Lyceum Capital Fund II, at GBP255m, more than 25 per cent over its target of GBP200m.
Lyceum Capital has announced the final closing of its new fund, Lyceum Capital Fund II, at GBP255m, more than 25 per cent over its target of GBP200m. The fund will invest, alongside management, in mid-sized UK-headquartered service companies.
Lyceum specialises in building small and medium-sized companies in fragmented markets into significant businesses by investment in strategic innovation, technology and add-on acquisitions that accelerate growth in size and market presence.
This is the first fund that Lyceum has raised since it was spun out of the investment banking business of Germany’s Westdeutsche Landesbank in May 2006. Since then, Lyceum has completed 16 acquisitions, comprising two new platform and 14 add-on acquisitions, and successfully exited four investments, realising a total of GBP216m for investors following the earlier realisations of Southern Cross and Asquith Schools for GBP225m.
The new fund attracted investment from 22 institutions and family offices in the UK, the US and continental Europe, including Axa Private Equity, GIMV, AP2, AlpInvest, F&C Group and the European Investment Fund. Six of the investors were limited partners in Lyceum’s previous fund.
‘We are pleased to have exceeded our fundraising target with the continued support of current investors and a number of leading private equity investors who are investing with Lyceum for the first time,’ says Lyceum chief executive Philip Buscombe. ‘We are seeing an increased flow of opportunities and continue to enjoy strong support from our banking partners.’
Since 2000, Lyceum Capital has used consolidation strategies to accelerate the growth and development of mid-market service companies, primarily in the UK, acquiring some 43 companies in healthcare, education, outsourcing, social housing services, technology and industrial services.
‘Axa Private Equity has worked with Lyceum Capital since 2003 and we are delighted to be a substantial investor in both the previous and the new funds,’ says executive board member Vincent Gombault.
Atlantic-Pacific Capital acted as placement agent for the fundraising, while Macfarlanes provided legal advice and PricewaterhouseCoopers acted as financial adviser.
