RJD Partners, a UK-based middle market private equity investors, has backed the management buyout of Harrington Brooks, a provider of debt management solutions, from Inflexion Private Equity.

The buyout is being led by chief executive Matthew Cheetham, who joined the business in 2007, and finance director Terry Sweeney, who was part of the original buy-in team in 2005, both of whom will increase their stakes in the business going forward. 

Debt facilities have been provided by PNC Business Credit, an asset based lender and the company’s incumbent banker

Harrington Brooks is based in Sale, Manchester and was founded in 1998 as a debt management plan provider. The company provides debt advice, debt management plans, individual voluntary arrangements and related non-lending services including claims management to indebted customers.

Harrington Brooks is now the second largest private operator with c.37,000 customers. The business has 380 employees and delivered an annual turnover in excess of GBP29m in the year to March 2012.

RJD has experience of investing in the financial services sector, having backed Ipes, TransLinc and Cardsave in recent years.

John Dillon, managing partner, RJD Partners, says: “We are delighted to back a well-established and proven management team in the buyout of Harrington Brooks. With UK household indebtedness continuing to rise, there is significant potential for the company to build on its excellent growth track record in a highly fragmented market place. We are confident the team is well positioned to fully exploit this.”

Matthew Cheetham, chief executive of Harrington Brooks, says: “We were impressed by RJD’s in-depth understanding of the debt management sector and the exciting potential that this dynamic market presents. RJD fully shares our ambitious vision and in partnership with them, we look forward to taking the business on to the next stage in its strategic growth plan.”