Elysian Capital 1 - Second Closing of 110.65 Million Pounds Strategy Attracts Blue Chip Institutional and Private Investors New Investment in Pharma Business

Elysian Capital 1 LP, the independent private equity fund (‘The Fund’) specialising in the UK lower mid-market (Notes to Editors), has reached a second closing of £110.65 million. The Fund is set to have a final closing in June 2010.

In this second closing, Elysian Capital has been backed by experienced private equity investors such as SL Capital Partners, Scottish Widows, South Yorkshire Pension Authority and West Yorkshire Pension Fund, as well as international investors such as Richemont Pension Fund and Parvilla.

The Fund has also received investment from several private individuals, as well as Doughty Hanson Investments Ltd on behalf of the founders of Doughty Hanson. These join Elysian’s founders (with a commitment of £25 million), Diagonal Group, Euro Private Equity and Spearpoint as original investors in the Fund.

Ken Terry, Elysian’s CEO and co-founder, said: “Our ability to complete a significant closing in very difficult market conditions is down to three differentiating factors; the proven track record of Elysian’s partners – between us we’ve completed more than 50 deals over the past 20 years, our investment strategy in bringing a strong operational and entrepreneurial approach to partnering with businesses in the UK lower mid-market, and – unlike many private equity businesses today – we have no legacy portfolio issues caused by buying companies at the top end of the cycle. Elysian is investing for the future, not spending its energies or its investors’ money in trying to rescue the past.”

The second closing coincides with the Fund completing two new investments: in Vertical Pharma Resources Ltd – trading as Integrated Pharmaceutical Services (IPS) – one of the UK’s leading suppliers of bespoke medicines, and an add-on acquisition for the Fund’s existing investment in English Landscapes [Notes to Editors].

IPS is a high growth company providing reformulated pharmaceutical products to meet prescription demand for patients with special drug requirements (e.g. those with allergies, religious restrictions or age or illness-related conditions). Founded in 2001, IPS has grown by providing the highest levels of product quality and service flexibility. Elysian has backed two of the four founders (supported by debt from Yorkshire Bank) to take the business forward and capitalise on its solid customer and production-led foundations to drive geographic and service offering expansion.

On 4 March, 2010, English Landscapes acquired Bristol-based Western Landscapes Ltd (trading as Wyevale Grounds Maintenance). English Landscapes was acquired by the Fund in March 2008. This is English Landscapes’ second acquisition in a consolidation strategy aimed at creating a significant player in the UK grounds maintenance industry.

Dr Chai Patel, Elysian’s Chairman and co-founder, said: “Investors are backing the Elysian team in this very difficult fundraising environment because they see Elysian as differentiated and adding value to the opportunities it identifies. Both IPS and English Landscapes are opportunities where we can provide operating support and guidance to management so that they can realise their own and their company’s potential.”