Endless, Leeds private equity firm, raises £100m

Endless LLP head of investor relations Lucia Villamor

Leeds-based private equity firm Endless LLP has raised its third SME fund, Enact III, securing £100 million to invest in opportunities in the UK lower mid-market.

This follows the £400 million which was raised for Endless V in early 2021.

The Enact III fundraise was managed in house by head of investor relations Lucia Villamor working alongside general counsel Simon Hardcastle and finance director Chris Lewis.

Endless has offices in Leeds, Manchester and London and has to date raised eight funds and acquired over 90 businesses.

Enact III is expected to make its first investments in 2022.

“Consistent with the strategy of prior funds and other Endless funds to date, Enact seeks to invest in businesses that face challenging situations and that do not meet the investment criteria of traditional private equity or bank funding, with the aim of driving change through the investment of capital, partnering with management, providing operational expertise, offering hands-on support and focussing on value creation,” said Endless.

“Enact III will principally target businesses based in the UK with an investment requirement of up to £10 million (an increase from £5m in Enact Fund II).

“Enact will continue to invest in a range of transaction types and circumstances, including turnarounds, financial and operational restructurings, the disposal of non-core assets, complex carve outs and challenging buyouts.

“Responsible investment remains at the forefront of Endless’ decision-making; the firm takes pride in protecting employment, supporting growth and encouraging entrepreneurship.

“Investments made by Endless across all its funds have safeguarded over 40,000 jobs, with investment focussed on long term value creation.

“The predecessor fund, Enact II, has invested in eight UK businesses to date.

“Enact II investments include hydraulic cylinder manufacturer Edbro, coatings manufacturer Bartoline and apprenticeship training provider Realise, with the Fund also delivering a first exit of Redhall Networks for a 4x return.”

Garry Wilson, managing partner of the Endless Group said: “Enact III was heavily oversubscribed and we had to lift our cap from £75m.

“Investors comprise successful entrepreneurs, experienced advisors and, for the first time, institutional investors.

“All the existing Enact II investors committed to Fund III, in addition to a number of new parties. As is always the case with our funds, the Endless and Enact teams are the single largest investor in Fund III, ensuring a strong alignment of interest with investors.”

Enact partner Chris Cormack said: “The demand from investors has exceeded our expectations, as more individuals look to invest into private equity, an asset class which can still be difficult to access.

“We are excited about the next chapter for Enact; the funding gap for SMEs is likely to be exacerbated further in the coming months as macro-economic headwinds in the global economy continue to bite.

“Enact will look to support those small and medium sized businesses that need capital to overcome operational or strategic challenges.

“We have expanded our team in the last two years with Richard Harrison leading Manchester and Felix Connolly driving London.”

Endless was advised by MJ Hudson.