Fundraising

SVG closes £70m public equities fund

SVG Capital has had the final close of its latest public equity investment fund, after its last fund delivered an IRR of 46 percent to investors.

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UK private equity investor SVG Capital has held the final close of its second Strategic Recovery Fund at £70.2 million ($141 million, €104 million).

SVG’s public equity team, which manages the fund, invests in UK listed companies it believes are undervalued and would benefit from strategic, operational or management initiatives. The team’s aim is to apply private equity style techniques to public companies.

The fund has attracted institutional investors, family offices and, surprisingly, 3i Quoted Private Equity, the listed vehicle that has a similar investment model.  

The team’s last fund, the Strategic Recovery Fund, delivered a net internal rate of return of 46 percent to investors. This is the fifth fund the team has raised and it currently has £400 million under management. 

The popularity of applying private equity techniques to the public market is rising, with 3i raising £400 million for its similar fund through a share offering on the public markets last week.