Return of £100m for investors after three PE house exits


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Private equity investment manager Foresight Group’s North West operation has returned more than £100m to investors in its first regional investment fund North West, after just three exits.

The £58m fund was launched in 2016 and has supported 17 SMEs with high growth potential.

Following the exit of innovative Manchester-based interpretation company DA Languages ​​(DAL) to IK Investment Partners last month, Foresight has now completed three investments for impressive returns.

The undisclosed DAL deal follows the successful sale of Hedges Direct in February 2021 and Clubhouse Golf in March 2020, which generated returns of 5.6x and 6.1x, respectively.

Investors in the fund, which includes the Greater Manchester Pension Fund, have now received cash proceeds totaling 1.8 times the cost – over £100million – with 14 investments still held in the portfolio.

Foresight’s 17 investments in the Fund, to date, have created over 900 high quality sustainable jobs, spent £6m on research and development in the past two years alone and, as of 30 June 2021, generated revenue growth of more than 95%.

As part of Foresight’s due diligence processes, around £3.3 million was spent with professional service providers in the North West.

The Fund has deployed £52m, specifically targeting North West England, South Yorkshire, West Yorkshire and North Wales, a model Foresight has replicated in other parts of the Kingdom -United.

The success of the first fund supported the raising of Foresight’s second North West Regional investment fund, which held its first close in May 2021, with £65m of committed capital.

The North West team is currently looking for new investment opportunities in the region. Claire Alvarez, Partner, Foresight Group, said, “We have worked hard in true partnership with the management teams of our portfolio companies to help them grow and become stronger, more sustainable companies. .

“In doing so, we have also generated exceptional returns for our investors – including several local government pension funds – who supported us during the initial fundraising in 2016.”

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