Risk Capital Partners LLP, the private equity firm, is pleased to announce the successful closing of its first institutional fund.
Risk Capital Partners LLP, the private equity firm, is pleased to announce the successful closing of its first institutional fund. A total of £75 million has been raised, including a significant contribution from the founders, Luke Johnson and Ben Redmond. Additional subscription comes from a range of blue chip institutional investors from the UK, Europe and the US.
The fund’s objective is to achieve above-average returns from investment in growth companies within the UK. In particular, Risk Capital hopes to take advantage of the opportunities offered by the credit crunch.
Luke Johnson says: “Owing to the economic downturn, there are many distressed sellers who will be forced to dispose of attractive assets in the coming months and years. This, together with our focus on providing growth capital to entrepreneurs and businesses to allow them to expand, has even more relevance in the current environment as banks are effectively closed for new business. We believe the mix of both of these types of deal presents the potential to generate outstanding returns over the medium term.”
Indeed, Risk Capital Partners remains on the acquisition trail, announcing on February 25th the purchase of Baker & Spice Ltd, the West London focused patisserie chain by existing portfolio company, Patisserie Holdings.
Luke Johnson says: “This complimentary acquisition presents an opportunity to turn around a small retailer that has come into difficulty following the economic downturn, illustrating our continued belief in building value through buy and build transactions.”
Finally, to coincide with the launch of its first institutional fund, Risk Capital Partners has relocated to Grafton Mews in Fitzrovia, central London. Risk Capital Partners’ new premises will facilitate growth as the firm commits to continued success in 2009.