Hanover Investors launches Private Equity Fund III
LONDON, UK - FEBRUARY 7, 2023
Hanover Investors launches Private Equity Fund III
• Firm announces £150m second close for Fund
• Fund to focus on small cap markets in the UK and the Nordics
• Builds on track record of delivering IRRs in excess of 40% over 20 years
London 7th February 2023 – Hanover Investors is launching a new Private Equity Fund to continue to harness significant acquisition opportunities in the small cap public markets.
The launch of its Fund III – which will have its final close by June 2023 - is building on the significant success of the firm’s two previous private equity funds.
The firm, which is announcing today the second close for the Fund at £150m, has achieved IRRs in excess of 40% over the last two decades.
Hanover was founded in 2002 and focuses on investing in illiquid, under analysed companies in the UK and the Nordics, where it delivers value through operational and strategic change and has a portfolio of companies with operations globally.
“The small cap market is often overlooked but this also means that many companies have unrealised potential and are ripe for transformation. Despite – and indeed because of - the current economic headwinds, the opportunities today are greater than they were twenty years ago. The announcement today about Hanover Investors Fund III gives us the firepower to seize the opportunities in the market,” said Matthew Peacock, Founder and Chairman of Hanover Investors.
“It is not a “popular” market which means we do not operate in an auction environment, which is important to us. What we have is pattern recognition, through our in-depth research, where we can identify those companies which we can take to the next level. We create value for our investors by building better businesses.”
Hanover Investors’ portfolio includes Brady Technologies, a leading provider of commodities and energy trading and risk management software; ClearStar, Inc. which is a leading provider of technology-based services specialising in background and medical screening; Kalibrate, a market leading provider of pricing software and network planning models to the petrol retail sector, with significant market presence both in the UK and the US; and ZetaDisplay, a service and software company headquartered in Sweden that delivers digital signage solutions.
“This is our third private equity fund, which is aligned with our consistent concentrated strategy. Fund III is targeted at investing into a portfolio of an estimated six to seven companies. There will be a significant portion of co-investment, and a focus on operational rather than financial leverage as these are key features which have worked well in our first two funds,” added Mr Peacock.
“Our approach has always been to have world class operators in the firm, who apply large cap experience to the small cap market. In the last 18 months we have been widening and deepening our bench strength in preparation for raising for Fund III, implementing the strategy as well as advancing the overall Hanover Investors platform.”
The senior team includes John Woodard who has 25 years’ experience in the private equity industry in positions spanning Credit Suisse First Boston, Wesray Capital Corporation, The Blackstone Group and Vestar Capital Corporation; Brett Lankester who was CEO of Union Bancaire Privee (UBP) in London, having sold his wealth management business, ACPI, to UBP in 2018. He was also previously a Managing Director at Goldman Sachs; Jocelyn Dehnert who is an experienced Board adviser with global management experience and deep expertise in leadership strategy; Michael Comish who was previously a Director in the Operations Group at TPG as well as serving as Tesco’s Chief Digital Officer; and, Jason Carley, who has significant experience in investing over €600mn in complex debt and equity special situations assets across the UK, Germany, Nordics, Benelux, Australia and developing markets. He was previously a Managing Director at Merrill Lynch.
About Hanover Investors
Hanover Investors is a specialist investor that operates in under-analysed and illiquid markets.
Hanover operates companies with activities across the globe, combines analytical rigour and flexibility in execution to create a repeatable model of successful investment selection. A deep understanding of a company's operational and strategic context is at the centre of the firm’s investment process, refined over decades of hands-on management of small to mid-size organisations.
Hanover focuses on an investment’s main levers of value creation, providing its portfolio with access to proven “playbooks” and a Hanover bench of specialists. This approach has delivered a market leading record of returns for over 20 years.
The firm puts a very strong emphasis on building and developing its team, attracting diverse talent, as well as providing personal and career growth.
For press enquiries please contact:
Investor Relations team: ir@hanoverinv.com