O'Melveny & Myers has advised venture capital firm Bridges Ventures on the creation and close of a £75m fund set up to invest in deprived areas of the UK.

The fund, which is the second raised by the company for this purpose, exceeded its initial target by 50%. Significantly, all of the money came from private sector investors – unlike the first fund, which raised £40m of which £20m came from the Government. Investors in the new fund include HSBC, Lloyds TSB, Citi and Barclays Business Banking.

O'Melveny corporate partner Solomon Wifa led the team, assisted by a team of lawyers including counsel Alasdair Gordon and tax partner Jan Birtwell. Wifa started advising Bridges Ventures at his previous firm, SJ Berwin, and was first instructed on this fundraising last year.

Bridges was set up in 2002 by Apax founder Sir Ronald Cohen, New Look's Tom Singh, and 3i to help stimulate economic activity and create jobs in deprived areas by backing businesses in those areas.

The new fund also intends to invest up to 25% in UK businesses producing educational, healthcare or environmental benefits.

The fundraising comes as the private equity sector faces growing criticism in the UK after a fierce campaign from unions. While similar ethical funds have been set up in the US, it is still a relatively new concept in the UK.