PHD looks to raise up to £25m for second fund
NORTH West private equity investor PHD Equity Partners, which was founded by corporate finance firm Dow Schofield Watts, is looking to raise £25m for its second fund.
The Daresbury, Cheshire, firm expects to reach its target before the end of the year, and says Fund Two will look to “build on the firm’s very successful strategy of investing in smaller UK businesses, with valuations of less than £10m.”
PHD’s maiden fund 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.
The PHD’s partners have undertaken to invest a minimum of £1.75m in the fund-raise. The initial close of Fund 2 will be mid-December 2014.
James Dow, managing partner of PHD, said: “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.
“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.”
Andy Dodd, partner of PHD added: “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.”
