LONDON – Strong investor demand has allowed first-time fund raiser Botts & Co. to increase the size of Botts Capital Partners L.P. to GBP150 million from GBP100 million ($241 million from $161 million). Launched in July 1998, the fund held a final close a year later, bringing the total private equity capital under management to GBP200 million ($321 million).
Botts previously has made private equity investments on behalf of United States. and European family offices, deploying its own resources alongside these discretionary funds. During the past eight years, the firm has led transactions with a total equity component of approximately GBP75 million ($ 120 million), which have generated an aggregate IRR of more than 60% per annum. Botts’ realized transactions include Parmalat, Nelson Hurst & Marsh, Sylvania Lighting International, Malmaison, Primesight and Grundig.
Institutions attracted to Botts Capital Partners’ track record include the Partners Group, Quilvest European Equity and The Common Fund, alongside other participants from the banking, institutional and family office sectors, primarily from the U.S. and Europe. Roughly 60% of the capital was drawn from Europe, and a great bulk of the balance from the U.S. The fund is split almost evenly between institutional participants and family office sources. Several of the latter category have invested with Botts in the past.
The fund is slated for investment throughout Western Europe, with a particular emphasis on the United Kingdom and German markets. Botts Capital will target mid-market deals, typically with an equity requirement of between GBP5 million and GBP20 million ($8 million and $32 million), although the vehicle has the ability to underwrite as much as GBP30 million ($48 million) in a single transaction. The managers ultimately aim to build a portfolio of 10 to fifteen controlling or substantial minority holdings for the fund. Botts Capital completed its first investment in May, providing a growth capital package for Test Valley Water Company, a U.K. supplier of branded bottled water and water coolers. Earlier deals remaining in the Botts portfolio include Asquith Court Schools, Cine-U.K., Videonet, PageOne, Osprey Publishing and Yxlon International.
Chairman and founder John Botts, a former CEO and chairman of Citicorp Investment Bank, heads Botts. Other key members of the Botts Capital management team are managing director Andrew Haining and directors Robin Black and Michael Handrick.