ISIS reaches £143m at second close for fund III

The UK private equity house is aiming for a £175m final close for its third fund targeting UK mid-market opportunities.

Isis Equity Partners, the private equity arm of ISIS Asset Management, has held a second close of its third fund targeting the UK mid market.

Launched in September last year, ISIS Equity Partners III held a first close at the end of December at £125m. Since then the firm has raised a further £18m to hold a second close at £143m.

ISIS III will look to make equity investments of between £3m and £20m in UK based companies with enterprise values of between £5m and £50m. As with its previous funds, fund III will invest predominantly in companies operating in the business services, consumer markets, healthcare, information technology and media sectors. The fund has yet to make any investments, although head of fund management Sheenagh Egan said the pipeline was looking good. 

The firm recently opened a new office in Manchester and plans to launch a Reading office in 2003. The firm’s 17 professionals, headed by Wol Kolade and Mark Advani, will be spread across its office network. “The Manchester office has already generated very good dealflow and we expect the Reading team to do the same,” said Egan. “Our sector focus has proved to be successful in identifying the best deals.”

Wol Kolade, managing director of ISIS Equity Partners, said he was optimistic about the firm’s investment opportunities in the current market. “We believe that the depressed IPO markets and the uncertain corporate environment provide an excellent backdrop for making investments in high quality mid-market companies.”

The firm says that fund will hold a final close before the end of 2003, and is targeting a total of between £175m and £200m.