Investment firm SVG Capital is pumping $140 million (£84.1 million) into a US private equity fund which is advised by former Tesco boss Sir Terry Leahy and Sir Nigel Rudd.
SVG is putting the money into Clayton Dubilier & Rice’s ninth fund as part of its decision to spread its investment more broadly than just its historic relationship with Permira. Last year it also put €100 million (£82.1 million) into Cinven funds.
Chief executive Lynn Fordham said: “The kind of exceptional returns from private equity investments we have seen in the past are going to be harder to achieve. That’s why we are looking for a blend in our portfolio with wider geographic spread and through fund managers who have demonstrated that they create value through operational improvements in the companies they invest in.”
SVG saw its net asset value jump by 31.5% in 2013 beating the FTSE 350 which returned 20.5%. The biggest drivers of growth were fashion house Hugo Boss which increased in vale by £121 million and ProSiebenSat which gained £93.7 million. Having written off its investment in fashion chain New Look three years ago, SVG has now written it back up to £16.8 million.
Clayton Dubilier is behind the soon-to-float discount shops chain B&M, chaired by Leahy.
