PHD Equity Partners LLP (“PHD”) announces today that it has launched its second private equity fund, PHD Equity Partners Fund No.2 LP (“Fund 2”). The firm is currently fundraising and expects to reach its target size of £25 million this year.
Fund 2 will build on the firm’s very successful strategy of investing in smaller UK businesses, with valuations of less than £10 million.
PHD’s maiden fund, PHD Equity Partners Fund No.1 LP (“Fund 1”), is on target to deliver an IRR for investors (net of all fees) of 24.6%.
Highlights of Fund 1 include the sale of Liberty Services to Capita plc for over 9 times the sum invested and the recent sale of ESG to SSE plc.
Fund 2 will again target investment into UK businesses, typically with a valuation of up to £10 million. In keeping with Fund 1, the partners of PHD expect Fund 2 to be exclusively supported by commitments from high net worth individuals, alongside the PHD partners who will be investing a minimum of £1.75 million.
The initial close of Fund 2 will be mid-December 2014.
James Dow, Managing Partner of PHD, commented, “The exceptional performance of Fund 1 has created strong support from our existing investors to grow and develop our investment business in this dynamic group of UK companies.”
Andy Dodd, Partner of PHD, commented “Through Fund 2, we will continue to build on the success of our proven capability to partner with emerging growing businesses and implement operational change and strategic initiatives to accelerate growth and enhance shareholder value.”
James Dow further commented, “I am extremely proud of the team and the track record we have built over the past six years. Our ability to invest and exit investments to generate attractive returns over this economic cycle is a testament to our capability to create investor value.”