The fund will invest in medium-sized, UK-headquartered companies in the service industries.

This is the first fund Lyceum has raised since its buy-out from its founding investors in 2006. It was oversubscribed, raising 27.5 per cent more than its target of £200 million.

Philip Buscombe, chief executive of Lyceum, says its business has been little affected by the credit crunch, and continues to enjoy ‘strong support’ from its banking partners, as well as ‘an increased flow of opportunities’.

Lyceum specialises in building portfolio companies through strategic investments and add-on acquisitions, and since its buy-out has completed 16 acquisitions, of which 14 were add-ons.

Its last fund, Lyceum Capital Fund I, invested in healthcare services (29 per cent of the total funds raised at cost), commercial and industrial services (22 per cent) and business outsourcing and technology services (22 per cent).

The founding investors of Lyceum in 1999 were AXA Private Equity, AlpInvest, GIMV and European Investment Fund.