ISIS closes first independent fund on £238.5m

The UK mid-market firm has closed its fourth fund above its initial £200 million target. It’s the firm’s first independent vehicle since spinning out of F&C Asset Management in 2005.

F&C Asset Management spin-out ISIS Equity Partners has closed its first independent fund on £238.5 million ($489 million).

The fund was originally targeting £200 million, but raised its ceiling to accommodate investor demand, the UK mid-market firm said. Limited partners include insurance companies, family offices, fund of funds and pensions from regions including the US, Europe and Asia-Pacific.

ISIS contributed an additional £5.5 million to the fund, which will target the lower end of the middle market and typically invest £6 million to £20 million in companies in the business services, financial services, consumer markets, IT, media and healthcare and education sectors.

Fund IV has already made one investment: In June, in it purchased Williams Medical Supplies, the UK’s biggest distributor of medical products to the primary care sector. The deal value was not disclosed, but the company has a turnover of about £47 million and ISIS contributed a £10.5 million equity cheque.

ISIS spun out of F&C Asset Management in June 2005. Its previous fund, a 2003 vintage £150 million vehicle, is fully invested, and according to the firm, has realised a return of 3.2x and a gross IRR of 82 percent as of 30 June 2007. The firm is led by Wol Kolade, who is also a council member and chairman of the British Venture Capital Association.