Private equity firm Key Capital Partners (KCP) enjoyed a successful end to 2018 following the exit of three portfolio companies in the last quarter of the year, generating a combined return of three times the initial investment, and with a total value of over GBP50 million.
In October, the firm sold its interest in glass processor MI Glass, based in Smethwick in the West Midlands, to the management team in a multi-million pound deal backed by Clydesdale Bank. The following month saw Oldbury school meals business Alliance in Partnership acquired by French catering company Sodexo. In December, Siamo Group, an award-winning Solihull recruitment and training business, also underwent a management buyout with backing from Clydesdale Bank.
KCP managing partner, Owen Trotter, says: “It’s always extremely satisfying to deliver great returns to investors, but it is tinged with sadness as we see three talented management teams leave our portfolio having worked very hard and delivered great results. As well as having provided investment to enable their growth, the KCP team has also worked closely with all three companies to provide strategic advice and help enable these dynamic businesses to realise their potential.
“For example, the team at Siamo took sales from GBP16m to GBP100m under KCP ownership; while AIP doubled sales and acquired two businesses. We’ve certainly enjoyed working with all three management teams and wish them well for the future.
“We are now on the lookout for more entrepreneurial firms with ambitious management teams who want to take control of and develop their business.”
KCP continues to be an active investor, having completed four new deals in the last two years. The firm makes equity investments of between GBP3m and GBP15m and has a strong reputation for deliverability as well as a track record of producing outstanding returns for its investors. Previous investments by the firm include Gear4Music, Construction Materials Online (CMO) and YorkTest.
