Elaghmore Partners’ first private equity fund closes at £60 million and makes its first investment Elaghmore Partners, today announces it has successfully closed its initial fund, Elaghmore I (Fund 1) at £60 million. Led by David Manning, Andy Ducker and Greg Koral, Elaghmore Partners has developed a strong track record over the past 10 years for investing in and successfully growing businesses, largely through operational transformation. Fund 1 was launched to capitalise on the partners’ successful track record and utilise their strong operational expertise in the UK mid-market, including turnaround situations.
The fund held a first and final close and is now fully operational. The fund was oversubscribed and the investors are a mixture of US and European institutions. The investment strategy of Fund 1 is focused on UK-headquartered industrial businesses that present a significant opportunity for growth and value creation. Lending their considerable operational experience, the partners will participate in every phase of the investment, including turnaround of the business, if necessary, its growth and development, and ultimately ensuring it is well placed to deliver returns for investors.
Elaghmore Partners was advised by London-based Rede Partners, an independent fund raising and secondary adviser to the private equity industry. SB Components acquisition and Chaucer Food Group exit Elaghmore Partners is also pleased to announce the completion of its first acquisition through Fund 1; SB Components, a leading supplier of bespoke components and adaptations for commercial vehicles. Based in Wisbech the Company employs 130 people and has sales of £17m. The Company has experienced strong growth over the past few years and is now poised for further expansion with the opening of a new manufacturing facility alongside it’s existing operations.
In line with Fund 1’s strategy, the partners look forward to working with the management team to further develop and grow the business. The acquisition of SB Components follows on from the recent exit of Chaucer Food Group, a specialist food ingredients business in which David, Andy and Greg led the Executive Team and were major shareholders. The sale to Japanese manufacturer of freeze-dried food, Nagatanien, represents an outstanding investment return for all stakeholders. The transaction brings together two well- established, successful businesses that share the same corporate philosophies and aligned strategies, and will serve as an exciting growth platform for both.
Andy Ducker, Elaghmore Partners, said: “We launched our first fund as a result of considerable institutional interest and were pleased to exceed our expectations to be able to close the fund at £60 million, including a significant financial commitment from ourselves as partners. “We have a clear and defined strategy of aiming to grow and support UK-based industrial businesses and our recent acquisition of SB Components is testament to this. Our extensive experience enables us to not only look at turnaround situations, but also to support management teams in delivering growth strategies for businesses, both on a domestic level and internationally. “Having exited Chaucer Food Group, the Elaghmore team will now focus on its investment in SB Components and exploring new opportunities for the Fund.”
© Elaghmore Advisor LLP, 2020
Elaghmore Advisory LLP is an Appointed Representative of NCM Fund Services Limited (FRN 183732) which is authorised and regulated by the Financial Conduct Authority
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