The first close of Foresight Group’s Regional Investment Fund was announced this week, with capital commitments at this stage of £38m.
It will target investments of up to £5m in profitable growth SMEs with strong management teams across a number of sectors, supporting management buy-outs and buy-ins, equity release and growth capital transactions.
Second round of regional investment
The fund is Foresight Private Equity’s second commercially focused regional fund. It launched a similar fund to invest £40m in Nottinghamshire SMEs in 2013, and has plans to raise additional UK regional funds in the future.
Partner and head of private equity at Foresight Group, Russell Healey, said: “We are delighted to have attracted a number of new institutional investors to Foresight, reflecting our track record of successful investment into high-growth UK SMEs.
“This fund continues the rollout of Foresight’s Regional Fund strategy to address the current structural gap in the SME funding market.”
Partner James Livingston added: “The region has a large number of underfunded SMEs, particularly within the engineering and hi-tech manufacturing sectors, creating opportunities for Foresight to support strong management teams in growth companies, create jobs, and deliver commercial returns to investors.
“We are looking forward to working with local advisers to identify and execute further high-quality investments in the SME market.”