London headquartered Inflexion Private Equity, a firm that also has offices in Manchester, Bangalore, Sao Paulo and Shanghai, has reportedly opened talks with a number of investors with a view to raising two funds totalling £900million.
Private Equity News originally reported this news at this link, stating that such a pool of capital would be the largest raised for United Kingdom based investments since the global financial crisis.
The website also added that Inflexion is currently speaking only to “selected investors” about the fundraising activities it is planning to undertake. This could be seen as an indication that Inflexion is looking to raise most of the capital for these funds from this selected investor pool.
Indeed, one source told the website that, if talks progress well and additional investors can be sourced, it is likely the fund could be closed before it is even officially launched or announced.
Inflexion’s Plans for the Fund
Inflexion is reportedly planning to split the total sum of £900million into two. The initial plan is to raise a total of £600million, which Inflexion then plans to use for buyouts across the United Kingdom. The second fund would add the final $300million, and sources told Private Equity News this would be “partnership capital” for Inflexion to use within minority investments.
The industry areas that Inflexion plans to target with these funds are unknown at this stage, although the firm is likely to cast its net far and wide given that its current portfolio includes clothing businesses – Jack Willis in the UK – and aviation and travel companies, such as CTC Aviation Group and Griffin Global Group. Inflexion’s portfolio is available to view in its entirety here.
2010 marked Inflexion’s last buyout fund, which brought a total of £375million, while in 2012 the firm added another £100million “co-investment” fund to supplement the primary buyout fund. Such is Inflexion’s reputation and power within the market that they were able to raise this additional capital with minimal public announcements in just six weeks.
Inflexion finds themselves in a strong position owing to a July 2013 Preqin report which named the firm the “most consistent performer” in the buyout marketplace, which further enhanced the firm’s reputation and boosted confidence both in-house and from investors.
Inflexion is following in the footsteps of two fellow mid-market UK private equity houses, although the funds they are raising are far bigger in comparison. Graphite Capital raised £475million in September 2013, which remains the largest buyout fund post financial crisis up to now, while Bowmark Capital raised £375million in the final quarter of 2013.
Other buyout firms with interests in the UK are likely to be keeping a close eye on Inflexion’s performance, with one eye on replicating it themselves through 2014 and into the next year.