PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Bridges partners with Tier 1 to support continued circular economy growth

Bridges Fund Management, a specialist sustainable and impact investor, has invested in Tier 1, a circular economy business that specialises in IT asset disposal (ITAD), IT refurbishment and the reselling of used IT hardware. 

Bridges will support Tier 1 with its organic growth plan, while also scaling the business further via acquisitions in a fragmented market.

Electronic waste is a growing global challenge. According to the UN, 54 million tonnes of e-waste was produced globally in 2019, and 83 per cent of this was not recycled sustainably, typically ending up in landfill (where it can be extremely toxic). The UK alone generated 1.5 million tonnes of e-waste – equivalent to 55kg per household, the second highest total in Europe*. 

Based in Manchester, Tier 1 works with corporate clients to safely and securely dispose of their end-of-life IT equipment. It then refurbishes these assets and re-sells them both through its own online channel and via third party IT resellers. Any assets that cannot be resold are broken up for recycling. As well as reducing e-waste, this also provides customers with a compelling alternative to buying new IT equipment, both from a price and sustainability perspective. Sales of refurbished IT equipment have been increasing year on year, and Tier 1’s differentiated market position and focus on quality means it is well placed to benefit from the further growth of this sector over the next decade.
 
Tier 1 has a strong social value focus, as recognised by the Queens Award for Enterprise in 2019. It has an exclusive partnership with the charity ComputerAid, which works to broaden access to technology in developing markets. It has also developed an innovative programme with the charity Antz Junction, whereby serving prisoners are given the chance to find work and provided with further holistic support after they are released. As well as having a direct impact on the lives of vulnerable people, Tier-1’s commitment to social value has also become a crucial part of their customer proposition, as it enables clients to achieve their own impact goals.
 
Bridges is backing the existing Tier 1 management team, led by CEO Jonathan Rose. As part of the investment, the company’s leadership team will also be bolstered by the addition of a new chair (Steve Richards, previously chairman of musicMagpie), a new CFO (Matt Freier, ex-Autocab and KPMG) as well as a new CMO (Helen Quinn, formerly of Interflora and Manchester United), in order to deliver the company’s impact-driven growth strategy. 
 
Jonathan Rose, CEO at Tier 1, says: “We’re delighted to be partnering with Bridges ahead of our next phase of growth. We really wanted to find an investor who shared our values and our impact focus, but could also help us achieve our growth ambitions. Bridges was the obvious choice. We’ve built a really strong platform already in the UK, and with Bridges’ help, we believe we can both scale the business and have an even greater positive impact for people and the planet.”
 
Bridges has 20 years’ experience of partnering with purpose-driven growth businesses, helping them to accelerate their growth and enhance their impact. It has developed specific expertise in the circular economy thanks to its recent successful investment in World of Books, whose technology supports the resale and recycling of used books and other media.
 
James Hurrell, Partner at Bridges Fund Management, says: “We are really excited to partner with Tier 1, which has the potential to become a market leader in the resale and recycling of IT equipment, and an exemplar circular economy business in the UK. In the coming years, we’ll be working with Jonathan and his excellent team to grow the business – both organically and through acquisitions – while maintaining its strong ESG and impact focus, which can make a significant contribution to reducing e-waste in the UK.”
 
This is the fourth new investment Bridges has made from its Sustainable Growth Funds this year, following its earlier partnerships with Nkuku, an ethical homeware retailer, Matrix Telematics, which promotes safer and more efficient occupational driving, and Talking Talent, a diversity and inclusion training and consultancy firm. The Growth Funds have also completed three successful exits in recent months: from World of Books, Wholebake (a healthy snacks manufacturer) and The Vet (an affordable veterinary services provider). 
 
Bridges were advised by KPMG and Pinsent Masons, while Tier 1 were advised by Mazars and Hill Dickinson.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured