PRINT THIS PAGE Hermes Private Equity closes £250m private equity fund12/09/2005. Source: AltAssets. 
 Hermes Private Equity, the private equity arm of Hermes Pensions Management, has closed its second direct private equity fund, Hermes Private Equity Partners II, on £250m.
For the first time in the firm's history Hermes Private Equity has raised money from an external investor: the Royal Mail Pension Plan committed £67m to Fund II and £33m to be invested through the first fund, Hermes Private Equity Partners I. The BT Pension Scheme, the owner of Hermes, has committed £183m to Hermes Private Equity Partners II.
HPEP II will continue with the firm's strategy. It will invest in middle-market buy-outs in the UK and Europe, typically valued in the range of £20-120m. All new investments will be made through the new fund, with HPEP I making only follow-on investments to support existing portfolio companies in their growth and acquisition plans, Hermes said in a statement.
Rod Selkirk, chief executive of Hermes Private Equity, said, 'I am delighted that our first external investor is the Royal Mail Pension Plan and that it has committed to back both new investments and the exciting growth opportunities in our current portfolio. We will be seeking to expand our investor base in the future - probably when we target our third fund. Meanwhile as part of Hermes, we have access to a larger pool of capital for bigger transactions if necessary.'
HPEP I initially raised £200m from BTPS in 2003. To date it has invested £125m in seven transactions, including the management buy-outs of Walbrook, Merlin Entertainments, Oyezstraker Group, Elec-Track Installations and The Works.
Hermes Private Equity has over £1bn committed to private equity, both as an active investor in external private equity partnerships, and through its own direct investment activity.
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