Inflexion today announces the successful final close of Inflexion Enterprise Fund V and Inflexion Supplemental Fund V, securing commitments at their hard cap of £400 million and £600 million respectively.
Raised exclusively from Inflexion’s existing LP base of blue-chip investors from across Europe, the US and Asia, both Funds were oversubscribed and closed at their respective hard caps in under 10 weeks. The investors committing to the Funds comprise leading institutional investors, including state and corporate pension funds, insurance companies and sovereign wealth funds. In keeping with previous fundraisings, Inflexion closed both Funds on schedule and without the support of a placement agent.
Inflexion Enterprise Fund V is focused on the UK lower mid-market. The fund follows the same successful strategy employed by Inflexion for over 20 years, backing high growth, entrepreneurial businesses with ambitious management teams and working in partnership with them to accelerate growth. Enterprise Fund V will make investments of £10 million to £35 million, taking both majority and minority stakes, in established businesses. Both Funds will invest across all sectors and each investee company will have access to Inflexion’s extensive resources spanning digital enhancement, international expansion, acquisition support, operational improvement and talent management.
Inflexion Supplemental Fund V will invest primarily alongside Inflexion Buyout Fund V, a £1.25 billion fund, and Inflexion Partnership Capital Fund II, a £1 billion fund, the pools of capital Inflexion raised concurrently in 2018. As with Inflexion’s previous supplemental funds, Supplemental Fund V will support the firm on larger investments.
As with the funds raised in 2018, the Inflexion Foundation will receive distributions equal to 1% of the Funds’ profits. The Inflexion Foundation primarily supports organisations that improve the prospects of disadvantaged young people.
We greatly appreciate the strong ongoing support of our existing investors to these funds. This is a clear demonstration of the continued investor appetite for private equity investing in the UK and beyond. Our family of funds give us unparalleled flexibility in the mid-market to offer tailored equity investments from £10 million to £250 million for majority or minority stakes. We are delighted that we can continue to back the widest possible range of high growth, entrepreneurial businesses combined with genuine support for ambitious management teams.
The closing of the Funds follows an active 12 months for Inflexion in which the firm invested close to £500 million in 11 businesses as well as supporting over 45 add-on acquisitions for its portfolio companies. Inflexion also successfully exited three businesses with a combined enterprise value of over £800m. Inflexion currently has a portfolio of 42 companies, reaching 150 countries and employing more than 20,000 people.
In 2018, Inflexion retained a leading position in Preqin’s annual global league for consistently top performing buyout funds. Inflexion is the only UK fund to be ranked in the top 10. The firm has also won a number of industry accolades for its success in growing the businesses it backs. Most recently, Inflexion was awarded the UK House of the Year and the Grand Prix House of the Year at the 2019 Private Equity Awards.