Home Business NewsBusinessBusiness Growth News ECI defies fundraising doldrums, hitting £1 billion hard cap for latest fund

ECI defies fundraising doldrums, hitting £1 billion hard cap for latest fund

by LLB Finance Reporter
26th Sep 23 12:44 pm

ECI Partners, the leading growth-focused, mid-market private equity firm, announces the final closing of its twelfth buyout fund, ECI 12. The fund reached its hard cap of £1 billion, beating its target of £900 million.

This achievement is especially notable given the widely reported private equity fundraising doldrums over the past 12 months.

This result, alongside a strong re-up rate of c.95% from existing investors reflects the strength of ECI’s track record, with two of ECI’s three most recent funds marked as the top performers in Europe in their respective vintages. ECI 12 has also attracted c.£300m of new capital, with high quality investors from across the globe, including North American pension plans, European foundations as well as capital from Asia.

The ECI 12 fundraise represents a 40%+ growth on ECI’s previous £700m ECI 11 fund, and was significantly oversubscribed at final close.

Chris Watt, Managing Partner, ECI said: “This is our biggest ever fund, and we’re particularly proud to have exceeded our target and to be oversubscribed, given the difficulties the fundraising market is currently experiencing.

“This is a reflection of our ability to generate market leading returns, with particular success across our last three fund vintages. Ultimately it is testament to the firm and the team’s ability to identify high-growth, resilient companies, and to support fantastic management teams to drive sustainable growth.

“We are incredibly grateful to the large proportion of existing investors for their continued support, many of whom have entrusted us with their capital for over 30 years. We’re also delighted to have secured several new international investors and look forward to building long-standing strategic relationships with them.”

Tom Wrenn, Managing Partner, ECI, added: “Resilience is more important than ever in today’s economic climate, so with our new fund we’re going to continue our successful formula of looking for resilient business models and fantastic management teams operating in high growth markets.

This will be our 12th single strategy fund with consistent fund on fund growth, demonstrating our significant experience understanding how to help these businesses grow, whether that’s organically or through M&A, in the UK or at a global scale.

“As a case in point, we recently announced our largest ever investment – €300 million – in Commify, the European leader in business messaging solutions to Local Enterprises.  The investment will help drive the company’s expansion through further acquisitions in both new European markets and in the US.”

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