The fund, GCP III, which was launched in January last year, was over-subscribed and raised £10 million more than targeted, according to a Growth Capital statement.
GCP III attracted backing from a global institutional following, the statement says. More than a dozen investors participated in the fundraising including the European Investment Fund, Golding Capital Partners and Lexington Partners.
London-based Growth Capital aims to achieve investment returns primarily through buy and build strategies, international expansion and operational improvement. The fund invests across sectors in the UK, typically committing from £10 million to £50 million in management buy-outs, development capital and secondary or tertiary buy-outs.
Recent investments include: Tangerine, a confectionery manufacturer; WrapFilm Systems, the owner of Baco Foil; Amor Group, a technology business; and Entec, an environmental consultancy. In April, the firm’s GCP Fund II sold its 40 per cent stake in A-Gas International, in a deal that valued the company at £70 million and generated a 2.3 times return.
Growth Capital managing partner Bill Crossan, comments, ‘We’re excited by the opportunity of deploying our fund through the provision of flexible, patient capital in a market that is the engine house of the UK and where there is significant value.’