Private equity firm Risk Capital Partners has announced the closing of its first institutional fund with a total of GBP75m raised.
Private equity firm Risk Capital Partners has announced the closing of its first institutional fund with a total of GBP75m raised.
It includes a significant contribution from the firm’s founders, Luke Johnson and Ben Redmond, as well as from a range of institutional investors from the UK, Europe and the US.
The fund’s objective is to achieve above-average returns from investment in growth companies within the UK. In particular, Risk Capital hopes to take advantage of the opportunities offered by the credit crunch.
Johnson says: ‘Owing to the economic downturn, there are many distressed sellers who will be forced to dispose of attractive assets in the coming months and years. This, together with our focus on providing growth capital to entrepreneurs and businesses to allow them to expand, has even more relevance in the current environment as banks are effectively closed for new business. We believe the mix of both of these types of deal presents the potential to generate outstanding returns over the medium term.’
Last month Risk Capital Partners announced the purchase of Baker & Spice, a West London patisserie chain, by existing portfolio company Patisserie Holdings.
Says Johnson: ‘This complimentary acquisition presents an opportunity to turn around a small retailer that has come into difficulty following the economic downturn, illustrating our continued belief in building value through buy and build transactions.’
Coinciding with the launch of its first institutional fund, Risk Capital Partners has relocated to Grafton Mews in Fitzrovia in central London.
Risk Capital Partners was established eight years ago, and focuses on medium sized deals (GBP10m-GBP50m) across a range of industries.
It has backed companies ranging from Signature Restaurants, which owned Strada, to Integrated Dental Holdings, Britain’s largest chain of dentists, and APT Controls, Britain’s largest supplier of car park equipment.
