PHD Equity Partners, the fund management arm of the Dow Schofield Watts Group, completed the first closing of its second fund at £16.5m.
PHD Equity Partners Fund No.2, which has a target of £25m, will commence investing it from January 2015.
Fund 2 will focus on backing established smaller UK businesses operating in a broad range of industries including manufacturing, distribution, and consumer and business products and services with the capacity to “scale up”.
The investee companies will typically have valuations of less than £10m with PHD providing up to £4m.
Backed by a diverse group of high net worth individuals, alongside the PHD partners who will be investing over £2m themselves, PHD Equity Partners Fund No.2 is expected to reach the target size by its final close in March 2015.
PHD Equity Partners is led by James Dow and Andy Dodd and based in Daresbury, Warrington.