£100m fundraise for Endless as it looks for transformational opportunities
Private Equity Investor Endless has raised its third SME fund, Enact III, securing £100m to invest in transformational opportunities in the UK lower mid-market.
The fundraise comes as Enact’s Paul Denvers was named investment rising star at last week’s Yorkshire Rainmaker Awards and follows a £400m raise for Endless V which looked to target opportunities in 2021.
Consistent with the strategy of prior funds, Enact seeks to invest in businesses that face challenging situations and that do not meet the investment criteria of traditional private equity or bank funding, with the aim of driving change through the investment of capital, partnering with management, providing operational expertise, offering hands-on support and focussing on value creation.
Enact III will principally target businesses based in the UK with an investment requirement of up to £10 million, marking an increase from £5m in Enact Fund II.
The fund will continue to invest in a range of transaction types and circumstances, including turnarounds, financial and operational restructurings, the disposal of non-core assets, complex carve outs and challenging buyouts. With Endless committed to responsible investment, protecting employment, supporting growth and encouraging entrepreneurship – with figures revealed showing investments made by Endless across all its funds have already safeguarded over 40,000 jobs.
Enact III looks to build on the success of its predecessor fund, Enact II, which invested in eight UK businesses to date including hydraulic cylinder manufacturer Edbro, coatings manufacturer Bartoline and apprenticeship training provider Realise, with the Fund also delivering a first exit of Redhall Networks for a 4x return.
Garry Wilson, managing oartner of the Endless Group said: “Enact III was heavily oversubscribed and we had to lift our cap from £75m. Investors comprise successful entrepreneurs, experienced advisors and, for the first time, institutional investors. All the existing Enact II investors committed to Fund III, in addition to a number of new parties. As is always the case with our funds, the Endless and Enact teams are the single largest investor in Fund III, ensuring a strong alignment of interest with investors.”
Enact Partner Chris Cormack added: “The demand from investors has exceeded our expectations, as more individuals look to invest into Private Equity, an asset class which can still be difficult to access. We are excited about the next chapter for Enact; the funding gap for SMEs is likely to be exacerbated further in the coming months as macro-economic headwinds in the global economy continue to bite. Enact will look to support those small and medium sized businesses that need capital to overcome operational or strategic challenges. We have expanded our team in the last two years with Richard Harrison leading Manchester and Felix Connolly driving London.”
The Enact III fundraise was managed in house by the head of investor relations, Lucia Villamor, working alongside general counsel Simon Hardcastle and finance director Chris Lewis. Endless was advised by MJ Hudson.