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Royal London Private Equity makes first closing on debut fund

Royal London Private Equity has made a closing on its debut fund at £64m, including a £20m cornerstone investment from the firm's parent company, life insurer Royal London.

Fund managers Scottish Widows and Morley Fund Managers are among those who have also committed to the fund.

Royal London launched the fund in July last year and had expected to reach an initial closing after six months. The firm's fundraising has been hampered by tough market conditions and geo-political uncertainty but David MacLellan, chief executive of Royal London Private Equity, remains positive.

‘Fundraising conditions have been more testing than in previous years and it may have taken us a little longer than we expected but this is still a good result,' commented MacLellan.

‘It is harder being a first time fund but we have a highly experienced team and so are not entirely without a track record,' said MacLellan. ‘It always takes time for a new team to get comfortable and to gel together, but we are happy with our progress,' he added.

The fund is targeting up to £200m and will invest in small to mid-market UK companies with an enterprise value of between £25m and £70m. The firm is currently working on several deals and is hoping to complete its first within the next two months.

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