SEP surges to £200m target as it defies gloom in the markets

OVERSEAS investors looking for stable returns have helped Scottish Equity Partners’ new growth equity and venture capital fund reach its £200 million target.

The fund, one of the largest raised in Europe over the last year, defied the difficult climate for private equity fundraisings.

Existing investors, including pension funds, accounted for 80 per cent of the total raised while investors in Europe and the United States provided half, indicating strong support for SEP’s track record.

The fund is 30 per cent bigger than SEP’s previous fund and the company will invest the capital into high-growth British technology and technology-related companies.

Managing partner Calum Paterson said: “We are grateful for the continued support of our long-standing existing investors and to have secured high quality new limited partners, particularly in the current economic climate.

“The fundraising reflects well on the hard work and commitment of our team. It is also testament to the collective endeavours and successes of the companies we have backed.”

He added: “There is a growing recognition of the positive role that experienced and long-term equity investors can play in building successful businesses, especially at a time when for many companies bank funding continues to be conspicuous by its absence.

“This new fund will allow us to continue to support the growth of innovative and ambitious UK companies.

“We have already identified a number of interesting investment opportunities for 2012, but we will maintain a disciplined approach and ensure that we continue to select and value our investments carefully.”

Completing the fundraising for SEP IV underpinned a successful year for the Glasgow-based firm which has expanded in recent years from a mainly Scottish portfolio into a broader based international operation.

The year saw several significant exits including the sale of pioneering cancer therapeutic company Biovex to US pharmaceutical giant Amgen in a $1 billion (£645m) deal, and a return of 12 times its investment in Zeus Technology which was acquired by Riverbed Technology in a $140m deal.

SEP’s current portfolio companies, which are predominantly based in the UK, employ more than 2,000 people and include some of the UK’s fastest-growing technology businesses.

The investment range for SEP IV is between £5m and £20m for growth capital and between £2m and £10m for venture capital opportunities.