Inflexion, a leading European mid-market private equity firm, announces the successful final close of Inflexion Partnership Capital Fund III ("the Fund") at its hard cap of £1.75 billion, making it the largest dedicated minority fund in Europe.

Inflexion’s Partnership Capital strategy targets minority equity investments into entrepreneurial, high growth, high margin businesses led by ambitious founders and management teams looking to accelerate growth. The strategy covers 24 investments announced to date, with eight exits generating realised returns of 3.9x gross multiple and 45% gross IRR.  This latest Fund follows its successful £1 billion predecessor fund.

The Fund comprises commitments from existing and new limited partners across Asia, Europe, the Middle East and the US, and includes public and corporate pension plans, sovereign wealth funds, insurance companies, asset managers and family offices. The fundraise was strongly supported by existing investors, the majority of whom increased their commitments, alongside significant capital from new investors.

The size of the Fund will allow it to partner with companies in the UK and Europe with an enterprise value typically ranging from £200 million to over £1 billion across Inflexion’s core sectors of Business Services, Technology, Healthcare, Industrials, Consumer and Financial Services. All companies backed by the Fund will have full access to Inflexion’s value acceleration resources covering M&A, international expansion, digital enhancement (including data and artificial intelligence), commercial effectiveness, ESG and talent management.  

The Fund is an Article 8 fund under the EU’s Sustainable Finance Disclosures Regulation, promoting environmental or social characteristics and integrating sustainability risks.

Partnership Capital is part of Inflexion’s mid-market solution covering three core fund strategies to provide a range of bespoke funding solutions across Europe. In addition to Partnership Capital, which is focused on minority investments, the flagship Buyout Fund is focused on majority investments across Europe whilst the Enterprise Fund focuses on the lower mid-market. In total, Inflexion has over £5 billion of committed funds to invest from.

We would like to thank our long-standing investors for their continued support and welcome the many new investors to the Inflexion family. Our unique strategy enables Inflexion to address the full spectrum of the European mid-market, providing bespoke majority and minority funding solutions.

Simon Turner, Managing Partner, Inflexion

Partnership Capital provides a truly differentiated European proposition and we are seeing increasing interest from both founder-led businesses and corporates wishing to partner with us. The businesses we back benefit from both our capital as well as our value acceleration experts to help drive growth whilst remaining in control of their businesses.

David Whileman, Head of Partnership Capital, Inflexion