Parallel Private Equity commits £70m to Greenhill’s European fund

The co-investment firm is looking for extra exposure to the UK and European mid-market, which has proved popular with investors and managers alike.

Parallel Private Equity, a mid market co-investment firm, has made a fresh commitment to Greenhill Capital Partners Europe, an affiliate of the boutique investment bank, of £70 million over five years.

Parallel said it demonstrated their appetite for UK and European mid market buyouts.

Parallel Private Equity looks to capture the advantages of both direct investments in terms of costs and focus and the risk diversification and administration advantages of a pooled vehicle. 

It raises annual pools of institutional money, which include some long-term commitments allowing it to make investments over several years. Earlier this year it committed €200 million to Duke Street Capital's fund over four years.

John Mackie, a director at Parallel, said: “We are keen to add capacity. Our five-year view is positive, there will be opportunities. Over the next few months we will take our foot off the accelerator while we see what the underlying economy does. Lower general activity and less leverage ought to lead to better prices. We will see where we are in six months.”

To date Parallel has invested over £1.2 billion on behalf of its investors in 317 companies and over £1.7 billion has been returned from 219 realisations.

Greenhill invests in mid-market companies located primarily in the UK and Europe.  It generally makes controlling or influential minority investments in companies with enterprise values of £25 million to £250 million. 

GCP Europe recently announced the final closing of its first fund with total committed capital of £191 million, of which approximately 35 percent comes from Greenhill and its employees.  GCP Europe has completed two investments to date.