BGF is to exit its investment in employee benefits firm Benefex, the first company to receive BGF funding when it launched in 2011. BGF’s minority stake will be acquired by Bain Capital.
The acquisition will enable Benefex to benefit from synergies with Bain Capital’s investments in the HR technology sector as the company moves to the next stage of its growth strategy. Founder Matt Macri-Waller will continue as shareholder and CEO.
BGF has invested GBP5.5 million into Benefex since 2011. With the investment, the company has expanded its product and service portfolio as well as operations in the USA and Asia-Pacific. In 2015, it was recognised in the London Stock Exchange’s 1000 Companies to Inspire Britain. Benefex has won over 50 awards for its services and supported over one million employees in 250 global organisations across 25 countries.
The transaction, led by BGF’s Paul Oldham, Fiona Gibson and Sarah Ledwidge, will represent BGF’s eighth full exit this year. More than 50 businesses have received new investment from BGF, either through initial or follow-on funding during the same period.
Matt Macri-Waller says: “We are proud to have been BGF’s first ever investment back in 2011 and they have remained a supportive partner throughout. With their backing, we have continued to drive innovation, build out OneHub, and been introduced to a number of BGF-backed businesses who have become valued customers.
“We are now excited to be partnering with Bain as we look to add further scale to the business and move to the next stage of growth.”
Paul Oldham, BGF, says: “Through investment in operations, infrastructure and people, Benefex has grown into an international company and become a leading player in its field, supporting businesses across the globe.
“As our first investment, Benefex also marked a seminal moment for BGF. The company has been very much part of our own growth journey and will now be a valued member of our alumni. We wish Matt, Giles and the team all the best as they embark on the next stage of their growth with Bain Capital.”
The proposed transaction is subject to customary closing conditions, including FCA regulatory approvals, and is expected to complete in autumn 2018. The financial terms of the proposed transaction have not been disclosed.
