PE firm raises £300m for second fund

Grant Berry

PRIVATE equity firm NorthEdge Capital, which focuses on investments across the North, has raised £300m for its second fund.

NorthEdge Capital Fund II (“Fund II”) was raised in four months and brings total funds under management to over £500m in the last four years.

NorthEdge’s maiden fund, which closed in March 2013 at £225m, has invested over £180m in 13 Northern-based businesses such as Blackburn’s Accrol Papers and Cheshire-based gym operator Total Fitness.

The average equity investment into each deal has been around £14m.

In the last 12 months, the team has made three investments in Rossendale-based home decoration supplier Arthouse, Total Fitness, and TKC, a supplier of kitchen and bedroom furniture and components based in Denton.

NorthEdge, which is headquartered in Manchester and has an office in Leeds, says it takes an active role in the acceleration of shareholder value creation of each investment alongside the management teams of each business.

Co-founder Grant Berry, managing partner of NorthEdge, said: “We are delighted to have reached the hard cap of £300m in such a short timeframe and that our existing investors continue to show great confidence in supporting the NorthEdge team and offering.

“We are also delighted to welcome four new high quality institutional investors. The North of England is now firmly on the map and continues to offer some great investment opportunities from a range of high growth businesses who are looking to broaden their national and global reach.

“We remain passionate about targeting dedicated management teams who want capital to maximise the potential in their businesses. In return we bring a positive, creative and straight-talking approach. Crucially, NorthEdge also offers local decision-making. The North is our home and where our network is, and this is where the investment decisions are taken by the partners.”

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