Fundraising of the Year
Bowmark Capital (Bowmark Capital Partners VII)
In January 2024, Bowmark announced the closing of its seventh flagship fund, Bowmark Capital Partners VII, with total commitments of over £900 million, approximately 50% larger than its predecessor.
It was the fastest UK fundraise in the period, with the final close held within just 3 months of the first closing, and the entire process completed in only 9 months, despite the challenging fundraising environment.
The fund was oversubscribed – with demand significantly in excess of both the target of £800 million and the hard cap – and had exceptional support from existing investors, with a re-up rate of over 100%.
The fund has a blue-chip investor base, comprising 31 leading international institutions, and is Bowmark’s first SFDR Article 8 fund.
93% of the fund’s capital was subscribed by non-UK investors, representing an important endorsement of the UK mid-market by the international investment community at a time of economic uncertainty in the UK.
We believe the success of fundraise was also testament to the transparent and fair way in which we have dealt with our investors over the past 27 years, especially during times when capital was abundant and the market “GP-friendly”, which was rewarded by their loyalty when capital became scarce.
Cinven (Eighth Cinven Fund)
Cinven was founded in 1977 and it has continuously innovated in its almost 50-year history of creating compelling returns for its Limited Partners: it raised the first billion-plus Europe-focused fund in 1996, led the first €1bn European MBO in 1998, and has raised more than €52bn. Today, Cinven has assets under management of c. €65bn.
Cinven held the final close of Fund 8 in Jan-24 at its hard cap of €12.75 billion, surpassing the original target of €12.0 billion, and with demand from Limited Partners exceeding the hard cap despite the challenging fundraising market backdrop. Cinven received strong support from both new and longstanding investors and Fund 8 is nearly 30% larger than its 2019 vintage predecessor fund, Fund 7, for which Cinven also reached the hard cap. The success of the Fund 8 fundraise was underscored by the strength of Cinven’s long term track record; the depth and experience of its team; and the consistency of its strategy of building long term, sustainable businesses with global growth opportunities.
Epiris (Epiris Fund III)
In February 2024, Epiris announced the final close of Epiris Fund III with total commitments of £1.044 billion, surpassing its target of £850 million with oversubscription at its hard cap. This was reached amid a challenging fundraising environment and a backdrop of macroeconomic volatility, including high interest rates and inflationary pressures. Due to global demand from new and existing investors, the Fund is 27% larger than its predecessor, which closed at £821 million in 2018.
Over the past 18 months, LPs have gravitated towards GPs with experience transforming more complex and unique situations, and Epiris’ all-weather strategy has proven its value through market cycles. Epiris has made four investments through Fund III, each performing strongly. The team is pursuing a robust pipeline of new investment opportunities.
Epiris has made several significant promotions and new hires to strengthen its investment and corporate teams, including the promotion of Kathryn Pothier to Equity Partner following her contributions to the Fund III fundraise, the appointment of Mike Ebeling as Equity Partner, and the promotion of Alex Wilby to Investment Partner, Zoe Lai and Thayne Forbes to Investment Director, Pablo Espinoza to Investment Manager, and Scott Forbes to Investment Associate.
Inflexion (Inflexion Partnership Capital Fund III)
In March 2024, Inflexion closed Inflexion Partnership Capital Fund III at its hard cap of £1.75 billion, making it the largest dedicated minority fund in Europe. Partnership Capital targets minority stakes in high-growth businesses that are seeking growth capital, shareholder realisation or support to fund acquisitions but where management wish to retain control.
Now our third fund dedicated to minority investing, Partnership Capital Fund III comprises commitments from existing and new investors across Asia, Europe, the Middle East and the US, and includes public and corporate pension plans, sovereign wealth funds, insurance companies, asset managers and family offices. The fundraise was strongly supported by existing investors, the majority of whom increased their commitments, alongside significant capital from new investors.
The strategy covers 25 investments announced to date, with eight exits generating realised returns of 3.9x gross multiple and 35% gross IRR. Partnership Capital Fund III follows its successful £1 billion predecessor fund.
Partnership Capital Fund III is an Article 8 fund under the EU’s Sustainable Finance Disclosures Regulation, promoting environmental or social characteristics and integrating sustainability risks.
Voting Closed
To find out who won, book a table at the Mergermarket British Private Equity Awards on 01 October 2024, by contacting Chris Coe.