CBPE Capital LLP has successfully closed its latest fund, CBPE Fund XI, at £714 million, surpassing its predecessor by 27%. The fund was oversubscribed and closed within four months, with participation from both existing and select new investors.
CBPE expanded its investor base geographically, attracting commitments from regions such as the US, Nordics, and Australia. Investors included pension funds, insurance firms, sovereign wealth funds, and asset managers, reflecting CBPE’s strong reputation.
Fund XI will continue CBPE’s strategy of primary buyouts, focusing on growing, cash-generative businesses in the UK and Ireland across five core sectors: business services, financial services, healthcare, industrials, and technology.
CBPE has demonstrated a disciplined, high-conviction investment approach, emphasizing value creation and strategic growth. Recent acquisitions include HGF, HealthNet Homecare, Clifton Asset Management, and HF, while notable exits, such as Centralis, yielded strong returns. Since 2008, CBPE has realized 20 exits with an average gross IRR of 31.3%.
The firm’s portfolio spans diverse industries, featuring high-growth companies like Xceptor, Spire Healthcare, and Learning Curve Group. Following Fund XI’s closure, CBPE remains committed to supporting ambitious management teams and driving strong returns, with leadership expressing gratitude for investor confidence and reaffirming their focus on UK lower mid-market opportunities.
Let’s break it down step-by-step and see why this matters—not just to the suits in boardrooms, but to the businesses and communities across the UK and Ireland.
First, why’s this a big deal? Well, in the private equity world, closing a fund this quickly signals trust. Investors, think pension funds, insurance companies, even sovereign wealth funds, were practically lining up to throw money at CBPE. It’s like when your favorite restaurant gets a queue out the door, you know the food’s good.
CBPE isn’t just sitting on this £714 million like a dragon hoarding gold. They’ve got a clear game plan: primary buyouts. That’s when they swoop in and buy businesses straight from their owners, think growing companies in the UK and Ireland with enterprise values up to £175 million.
These aren’t flashy tech startups; they’re cash-generative businesses, the kind that keep the lights on and paychecks flowing.
CBPE’s got its eyes on five key sectors: business services, financial services, healthcare & pharmaceuticals, industrials, and technology. Picture companies like a hospital group or a software provider for councils, stuff that’s essential, not trendy.
Their strategy? Take a hands-on approach, partnering with management teams to turbocharge growth. They’re not about quick flips; they’re in it for the long haul, aiming to create value through smart moves like international expansion or tech upgrades.
This approach isn’t new for CBPE. They’ve been at it for years, and it’s paying off, literally. Take their recent exit from Centralis, a corporate services provider. They turned a tidy profit with a 5.3x return on their investment. That’s like putting £1 in a slot machine and walking away with £5.30—pretty sweet, right?
A busy year: New deals and big wins
Speaking of action, CBPE’s been on a roll lately. In the last year alone, they’ve snapped up four companies:
- HGF, a top-notch intellectual property firm helping over 3,000 organizations protect their ideas.
- HealthNet Homecare, which delivers clinical care to 165,000 patients at home—crucial stuff, especially post-pandemic.
- Clifton Asset Management, managing £1.8 billion in assets for folks planning their financial futures.
- HF, a legal services outfit using tech to shake up insurance and commercial law.
These aren’t random picks, they fit CBPE’s focus on sectors that matter. And on the flip side, they’ve cashed out of three deals in the past 12 months, racking up a total return of 3.4x their money and a 31.3% internal rate of return (IRR) across 20 exits since 2008.
For context, a 30% IRR is like hitting the jackpot in private equity, it’s well above the industry average of around 15-20%, according to PitchBook data. Their Fund IX, launched in 2016, is a standout too. The first seven exits delivered a 5.2x return. That’s not luck; it’s a track record that’s got investors buzzing.
Behind all this is CBPE’s leadership trio, Iain Dale, Anand Jain, and Ian Moore. These guys aren’t just number-crunchers; they’re seasoned pros with a knack for spotting diamonds in the rough.
Ian Moore, one of the managing partners, put it this way: “We’re incredibly grateful to both our existing and new investors for their strong support in Fund XI.
The high re-up rate and interest from new geographies reflect confidence in our focused investment strategy and strong track record.”
Laura West, who heads up investor relations, chimed in too: “It’s a significant achievement for CBPE to have closed the fund in less than four months post-launch. We look forward to a long-term partnership with our investors as we strive to continue delivering exceptional returns.”
What’s in CBPE’s Portfolio?
Want a peek at who they’re betting on?
CBPE’s got a lineup of heavy hitters:
- CompliMed, keeping businesses compliant with regs.
- Xceptor, automating data for financial firms.
- Spire Healthcare, running private hospitals across the UK.
- JTC Group, managing financial admin for global clients.
- Learning Curve Group, training up the next generation.
- RJW & Partners, helping pharma firms price their drugs.
- Ideal Shopping Direct, selling goodies on TV and online.
- Civica Group, providing software for public services.
So, why should you care about a bunch of investors and their £714 million? Well, it’s not just about the money, it’s about the ripple effect. CBPE’s investments prop up businesses that employ people, pay taxes, and keep the economy humming.
Take Spire Healthcare, hospitals mean jobs for nurses, doctors, and support staff. Or Learning Curve Group, training folks for better careers. This isn’t abstract finance; it’s real-world impact.
Plus, the UK’s mid-market, companies too big to be startups but not corporate giants, is a sweet spot for growth. A 2023 report from the British Private Equity & Venture Capital Association (BVCA) found that private equity-backed firms grew jobs 7% faster than the national average.
CBPE’s focus here could mean more opportunities in your neck of the woods.
The private equity scene’s heating up, global fundraising hit $1.2 trillion in 2024, per Preqin, and CBPE’s riding that wave. If they keep delivering returns like they have, they might just set the pace for others in the industry.
So, there you have it, CBPE Capital’s Fund XI is more than a big number. Keep an eye on these folks; they’re making moves that could shape the economic landscape for years.
