Bowmark Capital raises new £375 million fund

Despite being restricted to Bowmark’s existing relationships, the new fund attracted investor demand significantly in excess of its £375 million cap, with approximately 90 per cent of the capital coming from investors in previous funds.

Bowmark Capital Partners V has 22 investors, with 49 per cent of the capital coming from Continental Europe, 34 per cent from North America, 8 per cent from the UK and 9 per cent from other countries.

Overall, pension funds committed 38 per cent and insurance companies 21 per cent, with 16 per cent coming from funds-of-funds, 16 per cent from other financial institutions and 9 per cent from endowments and family offices.

Bowmark is one of the most successful private equity firms specialising in the UK lower mid-market. Its previous fund, Bowmark Capital Partners IV, was raised in 2008 and has invested in eight fast-growing UK companies to date. These include Leaders Lettings, the UK’s largest specialist residential lettings agency; CARE Fertility, the UK’s leading independent provider of fertility services; and Drake & Morgan, the London-based bar-restaurant group.

The new fund will continue Bowmark’s proven strategy of active investment in growth-oriented service companies, typically with enterprise values of up to £100 million. Whilst a range of industries will be considered for investment, the fund will focus on healthcare, education, business services, consumer and leisure, IT services and media.

Transactions will include management buy-outs, buy-ins, roll-outs, build-ups and other later-stage development capital opportunities.

Charles Ind, joint managing partner, commented: "We are immensely grateful to our investors for the support they have given us, and for their help in enabling the fund-raising to be completed in only ten weeks. This demanding timetable would not have been achievable without their significant goodwill and hard work on our behalf".

Kevin Grassby, Bowmark joint managing partner, added: "The success of the fund-raising is a validation of Bowmark’s growth-oriented investment strategy, and of the quality of the management teams we have backed which have delivered outstanding performance during a challenging period for the UK economy".

King & Wood Mallesons SJ Berwin acted as UK legal adviser and Ropes and Gray as US legal adviser.