Next Wave Partners raises £27m

Next Wave Partners, the lower mid-market private equity house, has raised £27m using a parallel fund structure, it has been announced.

Launched in 2002, the private equity house raised its first external fund in 2007 and now has over £50m worth of funds under management, which it invests between £2m and £10m per company in the business, consumer and environmental services sector. The fundraising, which only commenced in September 2010, exceeded its target. The £27m of new commitments were raised from diverse sources including existing investors following on, institutional investors, large family offices and high net worth individuals.

Next Wave closed the second investment without having completed an exit, as existing investors signed up for the contract and new institutions backed the vehicle. As a result of the closing, Next Wave has increased its funds under management from £24m to £5m and is actively looking to make new investments. The fund will allow existing investors to take a cash distribution and will help boost exposure to the firm’s portfolio companies.

Jonathan Brod, founding partner of Next Wave, said: “We are delighted to have more than doubled the size of our funds under management, exceeding our fundraising target, in a short three month fundraising period. This has been made possible by the strong support of our existing investor base and an impressive roster of new institutional investors.”

Next Wave’s portfolio includes: Petainer, a European sustainable packaging manufacturer; Chapco, a property services and outsourcing firm; SPA Future Thinking, a market research agency; ITI, a renewable energy company; and Crendo, a Swedish facilities management firm.

Brod added: “This type of fundraising means that you put yourself out there to be judged. The fundraising structure created liquidity. Existing investors could have taken the money and run, and that would have left us high and dry, but we are told that we are a top-decile fund and we knew how well we were going,”

“Institutions liked what we were doing and this fundraising was over-subscribed within three months. We did this all without an exit.”


© Crimson Business Ltd. 2011


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