SEP closes £200m tech fund

Money set to be ploughed into high-growth UK tech firms

A new growth equity and venture capital fund, designed to support high-growth companies in the technology space, has been closed after raising £200m.

Scottish Equity Partners (SEP) decided to close the fund after reaching its target figure by the end of 2011. The fund, known SEP IV, ranks among the biggest created in Europe over the last 12 months.

According to SEP, around half the £200m was provided by UK investors, with the rest coming from Europe and the United States. Pension funds accounted for almost 60% of the total raised.

Glasgow-based SEP will now use the money to pursue growth capital opportunities of between £5m and £20m, and venture capital investments ranging from £2m to £10m.

Commenting on the new fund, SEP managing partner Calum Paterson said: “This new fund will allow us to continue to support the growth of innovative and ambitious UK companies.

“We have already identified a number of interesting investment opportunities for 2012, but we will maintain a disciplined approach and ensure that we continue to select and value our investments carefully.”

SEP’s portfolio already includes a string of fast-growing UK tech companies, representing all manner of specialisms from cancer treatment to multimedia networking, employing more than 2,000 people between them.

Prior to the closure of its new fund, SEP had benefited from a string of high-profile exits throughout 2011. The biggest came in July, when web traffic management company Zeus Technology was sold to Riverbed Technology for up to $140m (£90m).


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