CBPE Capital LLP (CBPE), a UK-based mid-market private equity firm, has closed its latest fund, CBPE Fund XI at the hard cap of £714 million. The fund was oversubscribed, closing in just four months, with only select investors invited to conduct due diligence. Fund XI marks a 27% increase from CBPE’s previous fund, Fund X, which closed at £561 million in 2020.
Fund XI received overwhelming support from existing investors and attracted select new investors with whom CBPE had built strong, long-term relationships. The latest fund diversified CBPE’s investor base by expanding in key regions like the US and the Nordics while securing commitments from new markets such as Australia. The investor profile includes insurance companies, public and private pension funds, sovereign wealth funds, family offices, asset managers, endowments, and foundations, reflecting CBPE’s strong reputation and track record.
Focus on primary buyouts and value creation
CBPE is led by an experienced and visionary leadership team that has steered the firm’s growth and success over the years. Iain Dale, Anand Jain, and Ian Moore are among CBPE’s key managing partners, bringing deep sector expertise and a proven track record in driving value creation. Their collective experience has enabled CBPE to consistently identify and partner with high-potential businesses.
CBPE maintains a high-conviction, low-volume investment strategy, with a disciplined approach to pricing and ambitious value creation plans. Fund XI will continue CBPE’s strategy of investing in primary buyouts, backing growing, cash-generative businesses headquartered in the UK and Ireland with enterprise values of up to £175 million.
CBPE focuses on five core sectors, including business services, financial services, healthcare & pharmaceuticals, industrials, and technology.
Recent investment activity and exits
The close of Fund XI follows a dynamic period for CBPE, during which the firm announced four platform acquisitions:
- HGF: A leading intellectual property firm
- HealthNet Homecare: A clinical homecare services business
- Clifton Asset Management: A wealth management firm
- HF: A legal services provider
Additionally, CBPE exited Centralis, an international alternative asset and corporate services provider, delivering an impressive 5.3x MoC. Over the past twelve months, CBPE completed three exits and achieved a total realised return of 3.4x gross MoC and an average realised gross IRR of 31.3% across 20 exits since becoming an independent firm in 2008. Notably, the first seven exits from Fund IX (2016 vintage) generated a blended return of 5.2x MoC.
Notable portfolio companies
CBPE’s diverse portfolio includes a range of high-growth businesses across its target sectors. Some of its notable investments include:
- CompliMed: Provider of regulatory compliance solutions
- Xceptor: Data automation platform for financial services
- Spire Healthcare: An independent hospital group in the UK
- JTC Group: Provider of professional financial administration services
- Learning Curve Group: A training and education provider
- RJW & Partners: Strategic market access and pricing consultancy
- Ideal Shopping Direct: Multi-channel home shopping retailer
- Civica Group: Specialist software systems provider for public sector organisations
What’s next?
Following the successful close of Fund XI, CBPE is poised to deploy capital into high-growth, cash-generative businesses across the UK and Ireland. With a focus on primary buyouts in core sectors, CBPE aims to leverage its disciplined investment approach and proven value creation strategy to drive continued strong returns for its investors.
Ian Moore, Managing Partner at CBPE, said: “We are incredibly grateful to both our existing and new investors for their strong support in Fund XI. The high re-up rate and the interest from new geographies reflect confidence in our focused investment strategy and strong track record. We remain committed to identifying and partnering with high-quality businesses in the UK lower mid-market and supporting ambitious management teams on the next phase of growth.”
Laura West, Head of Investor Relations at CBPE, said: “A huge thank you to all of our limited partners for their conviction in CBPE’s strategy and culture, and for their continued trust in us. It is a significant achievement for CBPE to have closed the fund in less than four months post-launch. We look forward to a long-term partnership with our investors as we strive to continue delivering exceptional returns.”
The post CBPE Capital closes Fund XI at £714M, targets primary buyouts in UK & Ireland appeared first on Tech Funding News.