The investor behind businesses such as Wagamama, Kurt Geiger and The Groucho Club has closed its eighth fund with help from new and existing backers.
The Graphite Capital Partners VIII fund has secured commitments of £475 million, with further contributions likely to push it over the £500 million mark in the coming weeks.
According to the firm, existing investors are providing 85 per cent of the fund on the back of exit activity which has seen the private equity house achieve returns of 2.3x for Dominion Gas.
Rod Richards, partner at Graphite Capital, says that the firm has an investment approach which generates high returns in a weak economic environment.
‘As the UK market remains highly competitive and the number of quality opportunities is relatively limited, it is particularly important to be able to address the widest possible range of sectors and deal sizes,’ he adds.
‘We are limiting the size of the fund to reflect activity levels in the market and have adopted a structure which gives us a high degree of flexibility on deal size.’
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New commitments have come in the form of London restaurant chain Hawksmoor and Explore Learning.
The new fund has over 20 investors, while 40 per cent of commitments are from the UK, Graphite Capital says.
Stephen Cavell, Graphite’s head of investor relations, adds, ‘This is not an easy fundraising environment and we are pleased to have been able to raise the fund quickly and without a placement agent.’