Investment of Foresight Group’s second institutionally-backed regional fund, the Foresight Regional Investment is ahead of schedule, having already deployed GBP15.5 million in five companies in its first twelve months.
The Fund was launched last year with support from investors including an anchor commitment from the Greater Manchester Pension Fund. So far in Manchester the Fund has backed golf equipment and clothing retailer Clubhouse Golf, facilities management provider Tudor Group and civil engineering and traffic management provider Utilities Design & Planning (“UDP”). These three companies have added 29 new staff since investment and seen revenue grow by 17 per cent and adjusted EBITDA by 67 per cent.
Tony Camilleri, Managing Director of Tudor Group, says: “With Foresight’s support we’ve been able to strengthen our management team, including the addition of David Steventon as Chairman, and really focus on winning new business. We’re already seeing the results of this, having recently signed a large new contract with Queen Elizabeth Hospital in Birmingham, and are looking forward to further expanding the services we offer and our customer base.”
Ben Reeves, Managing Director, of Clubhouse Golf, adds: “Since coming on board in February, Foresight’s investment is already helping us move our marketing strategy up a gear – we’re planning to launch a new website for mobiles this month and are currently looking to expand our overseas offering. We’ve already added staff at our warehouse in Irlam and to our telesales team to help us capitalise on the growth opportunities available.”
Dave Hilton, Managing Director of Salford civil engineering and traffic management company UDP, says: “We’ve got ambitious plans for the business and Foresight is the perfect partner to help us realise them. As well as benefiting from infrastructure investment in Manchester we’re expanding our reach across the region.”
The Fund’s focus is to invest up to £5m in SMEs in the North West, North East Wales and South Yorkshire. Foresight aims to develop local businesses by providing growth capital, strategic advice and support to help management teams grow their business.
Foresight announced the opening of a new office on Manchester’s King Street just 12 months ago and recruited local professional Claire Alvarez as Senior Investment Manager, followed by Investment Managers Rob Jones and Matthew Pomroy. The team is led by Foresight Partner James Livingston and supported by Foresight’s 18 strong private equity team, based in London and Nottingham.
The Fund has addressed a significant funding gap in Manchester and the surrounding area, providing much needed funding for local businesses. There is no shortage of opportunities in the region and Foresight’s team has reviewed potential investments in over 270 companies in a broad variety of sectors.
The team continues to work to develop deals from its pipeline and is currently in exclusive negotiations to complete its sixth investment, set to close in the coming weeks.
Paddy Dowdall, Assistant Director at Greater Manchester Pension Fund, commented: “We are happy to be supporting this Fund and the work done by Foresight to help local management teams grow their businesses in the North West and beyond. The Fund is not just providing capital. Foresight’s hands-on approach means these companies benefit from the group’s national network and the experience gained investing in hundreds of other smaller companies across a wide range of sectors.”
Russell Healey, Partner and Head of Foresight Private Equity, says: “The Fund’s rapid deployment rate speaks volumes about the number, and quality, of investment opportunities that we have seen in the local area. The companies in the portfolio have already made good progress since receiving investment and we expect to see further strong growth from them as we continue making new investments.”
