August Equity has closed its fifth fund (“AEP V”) at £300m.
The fund was significantly oversubscribed, with more than 40% of the committed capital coming from North America, including pension funds and endowments.
Philip Rattle, Managing Partner said: “It was an interesting time to be raising. We had conversations going with a large number of investors who were attracted. They liked the strategy and people were very positive about our performance in the past three funds.”
AEP V will look to make ten investments into service-led businesses. The fund will invest between £15m and £40m of equity into companies making between £1-5m EBITDA.
AEP V made its first investment into Air IT, a provider of managed IT support, digital transformation services and cyber security to SMEs. The business has c.500 customers and had a compound annual growth rate of 28%.
Commenting on the new investment Mr Rattle said “Industry providers typically focus on larger enterprises, yet the SME market is showing a trend towards outsourcing a lot of its IT, from cyber security to managed services.”
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