Leading European mid-market private equity firm Inflexion announced the final close of Inflexion Partnership Capital Fund III at its hard cap of £1.75 billion, making it the largest dedicated minority fund in Europe. The Partnership Capital strategy targets minority equity investments into entrepreneurial businesses led by ambitious founders and management teams looking to multiply.
This strategy covers 24 investments announced so far, with eight exits generating realized returns of 3.9x gross multiple and 45% gross internal rate of return (IRR). This fund follows its successful £1 billion predecessor fund.
The fund includes commitments from existing and new limited partners across Asia, Europe, the Middle East, and the US, as well as public and corporate pension plans, sovereign wealth funds, insurance companies, asset managers, and family offices.
The funding was supported by existing investors. And the majority of them increased their commitments along with significant capital from new investors.
The fund size will enable it to partner with companies in the UK and Europe with an enterprise value typically ranging from £200 million to £1+ billion across Inflexion’s various sectors. All of the companies backed by the fund will have full access to Inflexion’s value acceleration resources, which includes M&A, international expansion, digital enhancement, commercial effectiveness, ESG, etc.
The Partnership Capital fund is part of Inflexion’s mid-market solution covering three core fund strategies to offer a range of bespoke funding solutions across Europe. Along with Partnership Capital (focused on minority investments), the flagship Buyout Fund is focused on majority investments across Europe, while the Enterprise Fund emphasizes the lower mid-market. In total, Inflexion has over £5 billion of committed funds to invest from.
KEY QUOTES:
“We would like to thank our long-standing investors for their continued support and welcome the many new investors to the Inflexion family. Our unique strategy enables Inflexion to address the full spectrum of the European mid-market, providing bespoke majority and minority funding solutions.”
- Simon Turner, Managing Partner, Inflexion
“Partnership Capital provides a truly differentiated European proposition and we are seeing increasing interest from both founder-led businesses and corporates wishing to partner with us. The businesses we back benefit from both our capital as well as our value acceleration experts to help drive growth whilst remaining in control of their businesses.”
- David Whileman, Head of Partnership Capital, Inflexion
