Gresham LLP exceeds target of £200m for Gresham III fund

Gresham LLP, the independent regionally based mid-market private equity house, today announces it has raised £235 million in its Gresham III fund, exceeding its target of £200 million, just over a year since becoming an independent group.

Investors committing funds to Gresham III comprise pension funds, fund of funds, banks and insurers from the UK, continental Europe, Asia and the US. Investors include Access Capital, Alpinvest, ATP Private Equity Partners, Bank of Scotland, Henderson Global Investors, Swiss Re and Wilshire. Eagle Star Life remains a key supporter of the group.

Fundraising began in May 2003 and an interim close was announced in December 2003, with funds then committed of £153 million. Since the interim close, Gresham has backed the previous founders of Est Est Est, Derek and Edwina Lilley, and Steven Walker, founder of Manchester's Sugar Lounge, in the management buy-out of the Individual Restaurant Company and continued to support IT services group 2escape2 in its buy and build strategy. In the ten months since Gresham's initial investment, 2escape2 has made five acquisitions to broaden its range of services.

Gresham focuses on lower mid-market management buy-outs and expansion funding with typical deal values ranging from £5 to £75m. The UK lower mid-market has fewer competitors than other sectors and offers greater scope for operational and strategic improvements. Gresham invests in a wide range of sectors, but has particular experience in consumer products; pharmaceuticals/healthcare; industrial products; business/support services; TMT; entertainment/media and financial services.

Paul Marson-Smith, Chief Executive of Gresham LLP, said: "I am delighted that we are over- subscribed in just one year. This demonstrates the strength of Gresham's track record and the significant value creation opportunities in the UK lower mid-market."

"Gresham's regional network, proprietary deal origination and dedicated portfolio management team have attracted a broad range of investors from different fund types and geographies. This fundraising success makes Gresham one of the best capitalised private equity businesses in the UK mid-market."

"Our focus now will be to invest this new money in quality management teams and to realise profitable exits from a number of our portfolio companies in the coming months. Our regional profile means that we expect to invest around half of the money raised in the South of England, with the remainder split between the Midlands and the North of England."