Cabot Square Capital, the London-based private equity firm that invests in small to medium size companies across UK and Western Europe, has closed its second fund, CS Capital Partners II, at E284m, ahead of an original E250m target.
Cabot Square's first fund, which had a first close in 1996 and a second in 1999, totalled $300m.
The new fund, which the firm has been been in the market with for the past 12 months, has a small group of what James Clark, one of the founders of the firm, described as 'seasoned investors in the asset class.' These included university, foundation and endowment funds from the United States, he said.
Originally Cabot Square worked with the fund placement group at JP Morgan on the fundraising. Following the bank's decision to close the placement unit earlier this year meant that Cabot Square completed the process on its own. Clark declined to comment on how this development effected the fundraising.
The firm says it will use the fund to invest in small start-ups and mid-market buy-outs in the UK and Western Europe with a focus on the financial services, hospitality and leisure and outsourcing sectors. The aim is to typically make equity investments of between E10m to E50m in each investment. The Fund has made its first investment in TradePro, a niche financial services company.
Law firms SJ Berwin and Sidley Austin Brown & Wood worked on the fund's documentation.
Cabot Square Capital was formed in 1996 and is managed by John Van Deventer, formerly head of European structured finance at Goldman Sachs, and James Clark, who held a similar position at Lehman Brothers.