PHD Equity Partners has launched its second private equity fund

PHD Equity Partners has launched its second private equity fund, PHD Equity Partners Fund No2 LP.

The firm is currently fundraising and expects to reach its target size of GBP25 million this year.

Fund 2 will build on the firm’s strategy of investing in smaller UK businesses, with valuations of less than GBP10 million.

PHD’s maiden fund, PHD Equity Partners Fund No.1 LP, is on target to deliver an IRR for investors (net of all fees) of 24.6 per cent.

Highlights of Fund 1 include the sale of Liberty Services to Capita plc for over nine times the sum invested and the recent sale of ESG to SSE plc.

Fund 2 will again target investment into UK businesses, typically with a valuation of up to GBP10 million. In keeping with Fund 1, the partners of PHD expect Fund 2 to be exclusively supported by commitments from high net worth individuals, alongside the PHD partners who will be investing a minimum of GBP1.75 million. The initial close of Fund 2 will be mid-December 2014.

James Dow, managing partner of PHD, says: “The exceptional performance of Fund 1 has created strong support from our existing investors to grow and develop our investment business in this dynamic group of UK companies.”

Andy Dodd, partner of PHD, says: “Through Fund 2, we will continue to build on the success of our proven capability to partner with emerging growing businesses and implement operational change and strategic initiatives to accelerate growth and enhance shareholder value.”

By UKBAA 27 Nov 2014