UK focused small cap specialist, Mobeus Equity Partners (“Mobeus”) has raised £115 million of the £175 million target at the first close of Mobeus V LP (“Fund V”). Fund V, which was launched in Q2 2021, had a strong re-up rate from US and UK pension funds, endowments and foundations. New commitments have also been secured from a select group of high net worth entrepreneurs from the Mobeus Alumni network as well as a significant commitment from new investor British Business Investments Ltd.
Consistent with the investment strategy of Fund IV, Fund V will invest £5 million to £20 million in a mix of control and minority stakes in UK small cap MBOs. Fund IV, which closed in 2017 has already seen two exits, the latest of which was Ludlow Wealth Management; sold to Mattioli Woods plc, delivering a Gross IRR of 34% and a 3.4x MoC.
The fundraising follows the recent sale of Mobeus’s Venture Capital Trust (“VCT”) business to Gresham House plc which completed on 30 September. Following this transaction, Mobeus has returned to being a pure play, focused buyout house investing institutional capital in small-cap private equity transactions. The ongoing Mobeus business which comprises 14 people is now wholly owned by the four Key Persons for Fund V – Ashley Broomberg, Richard Babington, Justin Maltz and Chris Price.
Asante Capital is acting as exclusive global placement agent and Macfarlanes is providing legal advice.
Ashley Broomberg, Mobeus Managing Partner said:
“We have worked hard from the outset of Fund IV, and during the COVID-19 pandemic in particular, to build strong relationships with our existing LPs and we are very pleased to have received their ongoing support for Fund V. At the same time, we are delighted to have secured the support of British Business Investments Ltd as a cornerstone investor given its focus, long term commitment and expertise investing in the UK small cap space. We can now seamlessly transition from Fund IV to Fund V early next year.”