Growth Capital Partners secures £160 million for third fund

Growth Capital Partners has closed a third fund, securing £160 million to invest in small and medium-sized companies across the UK.

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.’

Todd Cardy

Todd Cardy

Todd was Editor of between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital.

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