Private equity firm trumpets £250m lower mid-market finance

INFLEXION Private Equity has announced the first and final close of a fund to back high growth, lower mid-market entrepreneurial businesses, securing commitments of £250m.

Inflexion Enterprise Fund IV will invest equity of £10m to £20m for majority and minority stakes in established businesses.

The dedicated Enterprise Fund team is led by Tim Smallbone, head of Inflexion’s North of England office, based in Manchester.

Smallbone is a longstanding Inflexion partner and member of its investment committee.
 
The Enterprise Fund will invest across all sectors and regions of the UK and all investee companies will have access to the firm’s extensive resources spanning value enhancement, in-house digital expertise, international support offices in Brazil, China and India, as well as its expertise in originating and integrating bolt-on acquisitions.

Inflexion enjoys a strong track record in lower mid-market transactions with highlights in 2015 including the sale of Aspen Pumps generating a 14x return, Reward Gateway which returned 7.7x and the 2014 flotation of FDM Group which generated 16.2x money and a 100% IRR.

It also listed Cheadle-based On the Beach in September 2015, generating a 3.6x return and remaining a shareholder in the company which continues to perform strongly in the public markets.

Inflexion has also announced it has raised Supplemental Fund IV which will invest alongside Inflexion Buyout Fund IV, a £650m fund, and Inflexion Partnership Capital Fund I, a £400m fund, the pools of capital Inflexion raised concurrently in 2014.
 
The Supplemental Fund gives Inflexion the firepower to co-invest alongside its larger buyout and partnership capital investments.  

Raised exclusively from Inflexion’s existing LP base of blue chip investors from across Europe, the US and Asia, both funds reached their respective hard caps in a single closing, within just eight weeks of launch. In keeping with previous fundraisings, Inflexion closed on timetable and without the support of a placement agent.