London-based ECI Partners, a mid-market private equity firm, announced on Tuesday, the final close of its twelfth buyout fund, ECI 12, at £1B (nearly €1.15B), exceeding its target of £900M (nearly €1B).
ECI Partners claims that its fundraising success, along with a high re-up rate of approximately 95 per cent from existing investors, reflects the firm’s strong track record. Two of its recent funds were top performers in Europe, further enhancing the ECI’s reputation.
Additionally, ECI 12 attracted around £300M (nearly €345.74M) in new capital from diverse global investors, including North American pension plans, European foundations, and Asian investors.
An oversubscribed fundraise
Chris Watt, Managing Partner at ECI says, “This is our biggest ever fund, and we’re particularly proud to have exceeded our target and to be oversubscribed, given the difficulties the fundraising market is currently experiencing.”
The ECI 12 fundraise was over 40 per cent larger than its predecessor, the ECI 11 fund, which was valued at £700M (nearly €806.74M).
“This is a reflection of our ability to generate market-leading returns, with particular success across our last three fund vintages. Ultimately it is a testament to the firm and the team’s ability to identify high-growth, resilient companies, and to support fantastic management teams to drive sustainable growth.”
“We are incredibly grateful to the large proportion of existing investors for their continued support, many of whom have entrusted us with their capital for over 30 years.”
“We’re also delighted to have secured several new international investors and look forward to building long-standing strategic relationships with them,” adds Watt.
Funds for expansion
Tom Wrenn, the Managing Partner at ECI, emphasised the importance of resilience in the current economic environment.
He mentioned that the firm’s strategy for its new fund, ECI 12, remains focused on identifying and investing in companies with robust business models and exceptional management teams operating in high-growth markets.
Wrenn says, “This will be our 12th single strategy fund with consistent fund-on-fund growth, demonstrating our significant experience understanding how to help these businesses grow, whether that’s organically or through M&A, in the UK or at a global scale.”
“As a case in point, we recently announced our largest ever investment – €300M – in Commify, the European leader in business messaging solutions to Local Enterprises. The investment will help drive the company’s expansion through further acquisitions in both new European markets and in the US,” adds Wrenn.
Brief about ECI
ECI Partners claims to be a prominent private equity investor known for its collaborative approach to supporting management teams. The firm manages funds totalling over £2B and specialises in investing in growth-oriented businesses with valuations of up to £300M.
ECI can act as either a majority or minority investor in these companies. The firm says its strong emphasis on growth has been a key factor in shaping its team and investment strategy, reflecting its commitment to helping businesses thrive and expand.
The firm says, “Whether it is IoT or Insurance, SaaS or SME services, our knowledge and conviction means we know quickly if we want to invest. It also enables us to help management teams on their growth plans from day one.”
ECI Partners’ achievements include:
- Long-term performance with a 2.8x gross MOIC and 35 per cent gross IRR across 127 investments since 1990.
- Net IRR of 24 per cent for investors across all funds since 1990.
- Over 70 per cent of investments realised at 3.0x gross MOIC and/or 30+ per cent gross IRR across the last three fund cycles.
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