Endless plans new fund of up to £300m
TURNAROUND and private equity specialist Endless has revealed it is set to launch a new fund of up to £300m as it looks to make more investments.
Speaking to TheBusinessDesk.com, co-founder Darren Forshaw said he expected the firm’s third fund – which will range from £250m to £300m – to be launched in 12 to 18 months time.
Mr Forshaw said Endless had received a favourable response from potential investors and that co-founder Garry Wilson was spending several days a week in London meeting interested parties.
Endless, which was launched in December 2005 with an initial fund of £135m, has currently invested half of its second closed fund of £164m.
Its focus is on acquisitions and equity investments which may include turnaround situations, financial restructurings, the acquisition of non-core businesses and challenging buy-outs.
The group, which is headquartered in Leeds and has offices in Manchester, Birmingham and a newly opened operation in the capital, has completed more than 30 transactions investing more than £195m in businesses across the UK.
Mr Forshaw said Endless was delighted with its investment portfolio and the way the business had progressed since it launched.
He said: “Did we think that in five years after we started we’d have £300m under management, four offices, including six staff down in Mayfair, and have the reputation for being the leading turnaround investor for the mid market?
“No, we didn’t but we’d hoped we’d be somewhere close. I think a lot of our success goes down to the fact that we predicted the market. And then we could bring a very strong team of quality people into it.”
He said he had doubts that next week’s Comprehensive Spending Review would provide a “watershed event” for the economy as it could take up to a year for any Government cost-cutting plans to be drawn up and put into effect.
Mr Forshaw is also sceptical about the so-called “refinancing wall” which it is claimed many companies will face over the next two years as banks reassess funding deals.
“It’s not beyond the wit of man to extend the timeframe by banks if refinance isn’t possible,” he said.
Speaking about Endless’s current portfolio, Mr Forshaw said the firm was happy with its investments and added that despite approaches for some of its portfolio companies, it was under no pressure to sell.
In the North West Endless owns Lancashire paint manufacturer Crown and schoolwear business Trutex. Its Manchester office is led by Warwick Ley.
Mr Forshaw added that Endless was receiving around 500 approaches a year from organisations looking for investment, from which it might make six or seven decisions on funding.
