UK-Focused Fundraising

by Louise Maddy

  • 23 May 2011
  • PE

Preqin’s Funds in Market product shows that there are currently 92 UK-focused funds on the road seeking aggregate target capital of €27.7bn. Of these funds, 27 focus on the UK as part of a broader geographic focus and 65 solely target investment in the country. Real estate funds are seeking the largest amount of capital, accounting for 48% of the aggregate capital being sought. Infrastructure and buyout are the next most significant fund types in the UK-focused market, seeking 31% and 5% of total targeted capital respectively.

The majority of UK-focused funds currently in market are located in the country with 65 vehicles having UK-based fund managers. 18 of the remaining fund managers are based in Europe, with seven of these based in France. There are eight funds with US-based managers, seeking €5.8bn in capital to invest in the UK.  
The largest fund currently in market and purely focusing on the UK is UK Property Income Fund, which is seeking €835mn to invest in the office, retail and industrial sectors. The fund recently held a second close on €283mn. This property fund is managed by Legal & General Property, which is based in London.

The Invicta Biomass Fund is the largest Infrastructure vehicle solely focusing on investment in the UK. The fund is targeting €465mn to invest in a portfolio of nine biomass power plants in Scotland. Invicta has identified the nine industrial and brownfield sites where the plants will be located.  It has created a joint venture with Scotland-based New Park Management, and expects all nine plants, which will total 100 MW, to be completed by 2013.

Amongst the buyout funds currently in market, LGV 7 Private Equity Fund is targeting the largest amount of capital to be focused purely on the UK. The vehicle is pursuing €298mn in capital commitments to invest in the business services, consumer products, healthcare and leisure industries in the country.  The fund made its first interim close in November 2010 on €200mn.

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