The private equity house of Lloyds Bank has backed a new restaurants-focused food and beverage fund to be run by Hill Capital Partners.
Mid-market investment firm LDC has provided £20 million for a newly formed restaurant fund to be run by former chief executive of The Clapham House Group, Paul Campbell.
The cash from LDC, which will be provided on a deal-by-deal basis, will be used to buy into ‘high growth’ UK-based restaurant and bar businesses with few outlets which are ready for roll-out expansion.
The fund, which is as yet un-named, will make investments of between £1 million and £4 million in companies which have a proven ‘high calibre innovative’ management team.
Fund leader Campbell has also had prior executive roles at The Clapham House Group and Pizza Express. He set up Clapham House as a £15 million AIM shell and then led deals into Gourmet Burger Kitchen and The Real Greek before selling it for £40 million in November 2010 to Nando’s.
Managing firm Hill Capital currently has a portfolio of invested companies including Tortilla Mexican Grill and Vinoteca.
Campbell adds, ‘I am delighted to be teaming up with LDC to launch this new specialist fund. We will invest in young restaurant and bar businesses with ambitious growth plans.
‘In LDC I have found ideal partners who embrace my vision for identifying talented management alongside with whom we can work to help grow innovative businesses.’
LDC says it will continue to invest independently in the consumer sector alongside its latest transactions in the place involving the ComplEat Food Group.
Tim Farazmand, managing director of LDC London, comments, ‘Paul’s proven industry expertise and entrepreneurial flair will be essential in helping to identify young restaurant and bar chains which possess innovative and proven concepts, strong management and high growth potential.’