Mobeus Equity Partners has held a close of its first institutional fund at around £140m (€163.8m).

The fund, Mobeus Equity Partners IV LP, has a hard cap of £150m. The firm expects to have conversations with further potential investors and hopes to reach a final close at around £150m over the summer, Real Deals understands.

Formerly purely funded by VCT capital, Mobeus made the decision to raise money from institutional investors following changes to VCT legislation in 2015. The firm will continue to run a VCT business.

The new fund attracted backing from ten investors, including pension funds, asset managers and family offices. Three of them, together representing around 37 per cent of fund capital, are from the US and the remainder are European.

The vehicle will invest between £5m and £15m per deal.

Mobeus has already made two investments from the fund: design consultancy Kinneir Dufort in September and invoice finance business Factor 21 in November.

It is in advanced stages of due diligence on a number of other transactions.