Alternative asset manager Gresham House has launched a new limited partnership aimed at enabling institutional investors to support growth companies in the UK and Ireland.
The launch of Gresham House Private Equity Release LP comes in response to increasing regulatory pressure for pension funds to invest in unlisted equities.
The fund has raised just under £60 million, surpassing its initial target of £50 million. It secured backing from Worcestershire Pension Fund as well as several corporate and private investors in the UK and Ireland.
Gresham House Private Equity Release LP will provide secondary capital to established portfolio companies of Gresham House’s Mobeus and Baronsmead venture capital trusts (VCTs). This will create an immediate pipeline for swift capital deployment, said the asset manager.
The strategy enables investment in new opportunities, secondary capital, buyouts, or co-investment alongside the VCTs, as needed for primary and secondary capital requirements.
With recent Mansion House reforms encouraging pension funds to invest in unlisted UK businesses, the fund allows institutional investors to support companies that have already shown robust growth for the Mobeus and Baronsmead VCTs, while benefiting from existing due diligence.
The fund will make investments ranging from £1 million to £10 million in 10-15 growing businesses with profitability and enterprise values worth £10-50 million.
The product is co-managed by Greg Blin, Trevor Hope, and Gresham House’s private equity team, targeting a 2.5x money multiple and net IRRs of 20%.
This launch adds to the asset manager’s existing offerings for institutional investors, including funds in forestry, real estate, and new energy technologies, including the recently launched Gresham House Secure Income Renewable Energy & Storage LP.
Hope said: “We have seen increasing interest from pension funds in private equity in recent years and believe our strategy represents a genuinely differentiated offering for the institutional market.”
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