UK Venture Fundraising

by Kouji Sonobe

  • 26 Jul 2010
  • PE

Preqin data shows that from 2008 to present EUR 7.4 billion in capital has been raised by venture capital fund managers based in the UK.  Of all private equity venture funds to close in the past two years, growth capital funds contributed the most in terms of aggregate capital raised, collecting EUR 5.3 billion in investor commitments. Growth capital, like most private equity fundraising during the past two years suffered during the financial crisis, with the total amount of growth capital funds closed in 2009 76% below the EUR 3.2 billion total raised in 2008. In the year to date, three growth capital funds have closed with an aggregated amount EUR 1.3 billion raised. For the venture industry as a whole over the past two years fundraising has declined from a total of EUR 4.4 billion in 2008, to EUR 1.3 billion in 2009. Currently, with six funds closed so far in 2010 private equity venture funds have raised an aggregate EUR 1.6 billion.

Looking at vehicles currently in the market for UK-based fund managers there are 30 funds on the road seeking EUR 3 billion in capital. The largest fund currently seeking capital in the UK is the Greater Pacific Capital Fund II. This fund from Greater Pacific Capital is currently on the road with a target size of EUR 535 million. The vehicle will primarily focus on venture capital opportunities in India and China.

Bancroft III, a venture private equity fund from Bancroft Private Equity seeking EUR 250 million in capital commitments, and the Zouk Cleantech Europe Fund II from Zouk, a EUR 200 million growth capital fund are the next two largest funds being raised by UK-based venture private equity firms. Bancroft III, like its predecessor funds seeks to make equity or equity type investment opportunities in strategic and mature companies. The Zouk Cleantech Europe Fund II focuses primarily in European, expansion stage clean-tech companies with commercially proven technology.




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