Kester Capital, a leading UK lower mid-market private equity firm, has announced the final close of its latest fund, Kester Capital III ("the Fund"). The Fund exceeded its target of £150 million and closed at its hard cap of £200 million, more than double the size of its predecessor fund. The Fund focuses on investing in primary buyouts in the healthcare and technology sectors.

International legal practice Osborne Clarke advised longstanding and valued client, Kester Capital. The team was led by Helen Parsonage who was supported by Nick Kristensen. Elizabeth Shanahan advised on tax.

The Fund builds on the successes of Kester Capital I and Kester Capital II, which have delivered three consecutive exits with a return over 4x and seven consecutive exits with a return over 3x. Osborne Clarke advised on Kester Capital’s most recent exit from Jollyes earlier this month, which delivered a return of 4.2x.

Alongside support from existing investors, the Fund attracted a number of new, blue-chip institutional investors from the US, Europe and the UK.

Kester Capital has committed 10% of the Fund’s carried interest to the Kester Foundation, which was established in 2022, to support a range of charities and not-for-profit organisations.

Cameron Crockett, Manager Partner at Kester Capital, said:

“Osborne Clarke has been an important partner to Kester in this fundraising journey, providing us with commercial legal advice and helping to drive forward negotiations with lots of new institutional investors (as well as repeat Kester-LPs). Helen, Nick and the team have been responsive, proactive and a pleasure to work with.”

Helen Parsonage, Partner and Head of Osborne Clarke's UK Financial Institutions Group, said:

"We're delighted to have supported Kester Capital with their latest fund. It's fantastic to see the success of the fundraise, particularly in the current market, as well as the company's commitment to making a meaningful impact in communities through the Kester Foundation."

Osborne Clarke is a leading European law firm with a widely recognised international funds practice, advising household names as well as emerging managers on fund formations and related matters. The team advises across asset classes including private equity, venture, real estate and hedge funds and has clients investing across sectors including financial services; technology, media and telecoms; energy and infrastructure and the built environment. The team has a particular interest in funds with a social impact angle.

Osborne Clarke’s private equity team is a go-to practice for many companies in the technology, media and telecoms sector, working with clients ranging from global businesses to fast-growth start-ups. The team advises at every stage of company development across all corporate issues, from equity and debt fundraisings to M&A, IPOs and JVs.

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