Promethean Investments will return to market with a third special situations fund targeting £150m (€165.85), Real Deals understands.

Promethean will also raise a “one-for-one” dedicated co-investment pool to sit alongside the fund, according to a source close to the firm.

Fund II was fully invested last week through the management buyout of Brickability, which was the vehicle's fifth deal.

Fund II’s first investment, in struggling pawnbroker Albemarle & Bond, was realised last year after an 18 month hold, returning circa 48 per cent of initial capital to investors.

The firm currently holds Sofa Brands International, Envirogen Group, DSG Financial Services and Brickability in its portfolio.

Promethean liquidated its first fund, which was launched in 2005 as an evergreen structure, with the advent of the financial crisis in 2009.

The realisation of Fund I’s assets was completed in 2013, with the portfolio returning a gross IRR of 40 per cent and a 1.9x money multiple.