European private equity partnership completes fund raising

F&C has held a final close at EURO;173 million for its European focused mid-market private equity fund of funds, F&C European Capital Partners LP.

The portfolio is managed by F&C's Edinburgh based private equity funds team headed up by Hamish Mair.

F&C European Capital Partners LP has attracted support from institutional investors from a range of countries including the UK, Netherlands and Germany and several pension schemes.

Hamish Mair, Head of Private Equity Funds at F&C, commented: "The fund will invest in a range of mid-market buy-out and mezzanine funds as well as directly in private equity companies from across Europe. The mid-market is attractive both from a long-term secular perspective as well as providing shorter term cyclical opportunities to make excellent private equity investments. The credit crunch is lowering prices in the mid-market but it is still possible for the main investors to arrange debt for buy-outs; this is a good combination from an investor's point of view."
The new fund is expected to be the first in a series of limited partnerships planned by Mair's team who also manage the £180 million F&C Private Equity Trust, a UK listed investment trust.