North Edge Capital has reached its debut close at a total of £125m (€158m) having attracted a host of international investors.
The newly formed firm invests exclusively into lower mid-market businesses in the north of England and while this may be its first fund, the team, which largely comprises former LDC employees, has some 80 years' experience and £768m in realised returns behind it.
The firm has successfully attracted investors from the UK, Europe and the US.
The fund will be used for lower mid-market buyouts as well as ownership changes and the acquisition of minority stakes. The firm does not intend to invest in any specific sectors, instead searching for businesses with ambitious development plans.