Scottish Equity Partners (SEP), the venture capital firm behind some of the UK’s most exciting high growth technology companies, today announces that it has raised £260 million for its latest limited partnership fund, SEP V.
The new fund, which was above target and over-subscribed, will be invested in high growth companies based mainly in the UK, although investments in companies in other European countries will also be targeted.
Investors in previous SEP funds account for almost 90% of commitments to the new fund, endorsing its strong investment track record and reputation. UK investors account for approximately 40% of the fund, with the remaining 60% contributed by investors based in Europe and the United States. Investors include pension funds, providing approximately one third of the total raised, fund-of-fund investors, family offices and corporates.
SEP V will execute a strategy that is consistent with previous SEP funds, pursuing investment opportunities of up to £20 million in growth-stage technology companies led by ambitious management teams, where SEP can build value and optimise investment returns by playing an active and supportive role in their development.
SEP’s current portfolio companies employ more than 5,500 people and have aggregate revenues of over £1 billion. They include Edinburgh-based travel search company Skyscanner, London-headquartered high-end fashion business Matchesfashion, and online car finance specialist Zuto, which is based in Manchester. Non-UK companies in the portfolio include online eyewear company Mr Spex and language learning company Babbel, which are both based in Berlin, and Dublin-based e-commerce analytics company Clavis Insight.
SEP Managing Partner Calum Paterson said:
“We are very pleased to close this new fund, which provides us with a strong platform to continue investing in high growth technology companies. Our investors recognise the significant experience we have in identifying great companies, and our ability to work well with their management teams to build value and generate attractive investment returns. We thank our investors for their support, as well as the companies in our portfolio for all they have done to help us be successful. Despite the current backdrop of continued economic and political uncertainty, we are seeing a very strong pipeline of investment opportunities, particularly in sectors such as software as a service, e-commerce, fintech and data analytics. We look forward to announcing our first investment from SEP V soon.”
Total funds under management by SEP now exceed £1 billion. The firm has 45 partners and employees across its London, Glasgow and Edinburgh offices.