A firm set up by a founding partner of Doughty Hanson is nearing a final close for its second fund above the initial target, according to two people familiar with the matter.

Elysian Capital, a UK lower mid-market-focused buyout firm run by Ken Terry, who co-founded European buyout firm Doughty Hanson, is expected to hit a final close on its second fund at between £240 million to £250 million in the next two weeks.