Private Equity Group Taps Family Office and HNW Money

Stephen Harris

28 June 2005

UK-based private equity group Headway Capital Partners has raised over €52 million ($34 million) from family offices and high net worth individuals with its debut fund. The firm has a particular expertise in conducting smaller and more complex transactions to be able to provide highly tailored liquidity solutions for vendors. Acquisitions include interests in venture and buy-out portfolios, portfolios of direct investments and minority stakes in single companies. Headway's new fund was raised solely from family offices and HNWIs as a deliberate fundraising strategy that was especially pertinent to the effectiveness of the complex transactions the firm is involved in such as the secondary market. The secondary market has grown rapidly in recent years, largely due to the huge rise in primary fund raising during the late 1990s. The composition of deal flow, however, has changed over the last 18 months as the influence of distressed sellers has receded and strategically-driven vendors have assumed a new importance. The result has been a need for greater creativity and sophistication among prospective buyers.