Sovereign Capital, a UK firm specialising in mid-market buy-outs, has closed a fund after raising commitments worth £120m (€190m) from 20 investors including pension funds, insurance companies and endowments internationally.

This is Sovereign Capital's third fund. It was launched in October 2000, which means it was being raised during one of the most difficult fundraising environments of recent years. The firm, which has been in existence since 1988, was able to use its track record from earlier funds to help persuade potential investors of its ability.