Currencies

Dollar rises as markets turn eyes to Opec

European bourses are mirroring a tentative Asia session as the dollar continues to be supported by better US economic data and investors turn their attention to a meeting between Opec members. Sentiment is underpinned by US index futures suggesting the S&P 500 will gain 3 points to 2,207.3 when trading gets under way later in […]

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Banks

Basel Committe fail to sign off on latest bank reform measures

Banking regulators have failed to sign off the latest package of global industry reforms, leaving a question mark hanging over bankers who complain they have faced endlessly evolving regulation since the financial crisis. Policymakers had hoped to agree the contentious new measures at a crunch meeting held in Chile this week, but a senior official […]

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Financial

Travis Perkins and Polymetal to lose out in FTSE 100 reshuffle

Builders’ merchant Travis Perkins and mining company Polymetal face relegation from the FTSE 100 after their recent performances were hit by political events. The share price of Travis Perkins has dropped 29 per cent since the UK voted to leave the EU in June, as economic uncertainty has sparked concerns among some investors about the […]

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Economy

Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Financial

Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Categorized | Financial

Inflexion raises £1bn for private deals


Posted on September 30, 2014

Inflexion, the London-based fund manager that owns stakes in clothing designer Jack Wills and travel agent On the Beach, has amassed more than £1bn, the largest amount raised for UK private equity deals.

The investment group, which targets small to medium sized companies, has simultaneously raised £650m for leveraged buyouts and £400m to buy minority stakes in UK businesses, double the amount it raised for a single pool in 2010.

    Both funds were oversubscribed within five months in part thanks to “overwhelming support“ from existing investors, highlighting how the private equity groups that have weathered the financial crisis are attracting a greater share of investors’ cash, while those that have had losses struggle to raise any money.

    “We just had a brilliant last 24 months during which we’ve done lots of new investments and some fabulous exits,” Simon Turner, managing partner at Inflexion, told the Financial Times.

    Fundraising volumes have picked up in the past year as fund managers were able to accelerate the pace of asset sales and distributions to their investors. Inflexion returned more than 16 times its initial investment in FDM in four years when it sold its shares in the IT company through a London listing in June. The group’s fund raised in 2006 is marked at more than twice its cost and the 2010 pool is profitable, Mr Turner said.

    The new minority stakes fund will be headed by David Whileman, who defected a year ago from 3i Group, where he was head of the UK.

    This new pool will “provide solutions to entrepreneurs who don’t want to take on debt and don’t want to sell control but who do want the benefits of an institutional investor being involved,” Mr Turner explained.

    The total amount raised by Inflexion’s two funds tops Exponent Private Equity Partners’ £805m pool collected in 2008, and follows ECI’s closing of a £500m fund dedicated to UK deals last month. Last year, Graphite Capital garnered £475m.

    The successful fundraisers contrast with the fate of Gresham, one of the oldest names in British private equity, which in June, decided to abandon plans to raise another fund and focus on selling its portfolio instead.

    There were 193 UK buyouts completed in the first half of this year, according to data compiled by the Centre for Management Buyout Research. This compares with 365 for the whole of 2013, the lowest number of deals since 1985, and a peak of 718 buyouts in 2003.