South African investors have shown strong appetite for offshore private equity exposure, backing Westbrook Alternative Asset Management's inaugural UK private equity fund with £75m (over R1.6bn).
Source:Supplied. Rob Grieve, Westbrook UK Head of Private Equity.
The first closing was completed in March 2026, with the fund completing its first investment just a month later.
Raised largely from high-net-worth individuals and wealth managers, Westbrook UK Private Equity Fund I will target six to eight UK lower mid-market businesses over two years, aiming to deliver long-term capital growth as well as hard-currency returns in excess of 20% annually.
The fund's first investment was a co-investment with UK-based sponsor Total Capital Partners in the management buyout of Radiocomms, the UK's leading critical communications provider. The transaction demonstrates the fund's ability to move forward quickly and purposefully once capital has been committed.
“We focus on cash-generative, niche UK businesses that are too small for large buyout funds, and partner with strong local sponsors to help management teams unlock the next phase of growth,” says Rob Grieve, head of Westbrook UK Private Equity.
“The lower mid-market is where we see the most attractive risk-adjusted returns in UK private equity today, and Radiocoms is a textbook example of exactly the kind of business we want to support.”
The first close of £75 million was led by South African high-net-worth investors and their wealth managers, incorporating offshore allowance capital into a structure that provides portfolio diversification, sterling-denominated returns and direct exposure to growing UK businesses, with Westbrook physically investing alongside its clients.
Westbrook management and shareholders committed more than £7.5m to the strategy.
Appetite for offshore investment
For South African investors managing foreign-investment allowances, Westbrook's UK private equity strategy focuses on the UK lower mid-market and offers something that is difficult to replicate elsewhere: attractive equity returns in hard currency, from businesses with strong cash flow profiles, backed by a manager with a 20-year private equity track record.
“South African investors are increasingly externalizing capital, but then struggle to access proven, specialist managers,” says Dino Zuccolo, head of Investor Solutions at Westbrook.
“The fund structure addresses this, providing access to Westbrook's proprietary deal flow, diversification and co-investment options. The response from South African investors has validated the investment thesis, and the pace at which we have deployed in Radiocom reflects the strength of the pipeline.”
The UK private equity market is one of the most mature in the world, with £400 billion raised by UK-managed funds since 2015. Yet the lower mid-market of around 196,000 businesses with EBITDA of less than £10m remains structurally disadvantaged.
Fewer institutional buyers, less arbitrage, and founder-sellers who prioritize the right long-term partner over the highest bidder create conditions that disciplined investors can take advantage of.
Westbrook has been operating in the UK since 2017, arranging and investing over £600m in over 200 private transactions. Its London-based investment team brings on-the-ground knowledge of a market that shares significant cultural, legal and commercial ties with South Africa.