UK-based fund manager Downing has committed a seven-figure investment to consumer technology company Tactus Group (Tactus).
Founded in 1986, Downing is an FCA authorised and regulated investment manager with over 30 years’ experience. It currently has over GBP1.4 billion of funds under management.
The investment from Downing was made alongside a GBP10 million injection of private capital from multi-family investment office Arete Capital Partners, which enabled Tactus to complete its acquisition of CCL, a Yorkshire-based e-commerce PC gaming specialist. It will also support future fundraising for the wider group as it targets more acquisitions across the UK and globally.
North West-based Tactus is a consumer technology expert, specialising in gaming, education and entry level computing. The Group holds strong relationships with leading corporate technology businesses, such as Microsoft and Intel. Having generated significant organic growth in recent years, combined with the CCL acquisition in April 2021, Tactus is on track to hit revenues of GBP175 million by FY22. The firm has grown headcount significantly in the last 12 months, taking it from 20 people to a 115 strong team.
Judith MacKenzie, Head of Downing Fund Managers, says: “Tactus Group operates in an incredibly exciting market and we’re delighted to add them to our growing portfolio. The company is well positioned to capitalise on the opportunities in the gaming space, which has emerged as one of the world’s fastest growing sectors in recent months, and we were pleased to be part of the CCL acquisition. Our investment will support Scott and the wider team through organic growth and acquisitions, as well as using our experience and network to advise on future fundraisings.”
Scott Brenchley, CEO of Tactus Group, says: “With the strategic backing from Arete and Downing, we are well positioned to continue to build on Tactus’ success in the years to come. Completing the CCL acquisition was a significant first step for us on our M&A journey, and the support we have received from both Arete and Downing was vital in getting us to this position. We look forward to continuing to build on our great relationship with the team at Downing as we continue on our growth journey.”
Mike Fletcher, joint managing partner at Arete Capital Partners, says: “The addition of Downing as a joint investor alongside Arete gives Tactus an even brighter future. Downing demonstrated a deep understanding of the Tactus opportunity and has shown a great enthusiasm to support the company’s ambitious growth plans. We’re really looking forward to working with Judith and the team in executing Scott’s vision for the future of Tactus.”
