Phoenix Equity Partners buys majority stake in Nexus Vehicle Rental for £142m

Phoenix Equity Partners, the London-headquartered independent private equity investor, has acquired the majority shareholding of Nexus Vehicle Rental from Bowmark Capital in a deal worth £142m.

Established in 1999, Nexus is a tech-driven business mobility provider, offering clients access to the UK’s largest supply chain of daily rental vehicles.

Connecting vehicle rental companies with corporate customers, the company provides access to more than 550,000 vehicles across 2,000 locations nationwide, with bookings made in seconds via desktop or app.

Nexus, which was acquired by Bowmark in 2015, has also reported its fourth consecutive year of double-digit growth in both turnover and profit.

The company reported a record 11,594 vehicles on rent in a single day in July, representing a 58% increase on the same period in 2017. The first half of the year saw Nexus expand its Leeds headquarters, with employees rising 12% to 126, providing additional services for customers.

Phoenix specialises in investing in UK fast growth companies, backing management teams to build world class businesses. Phoenix will take two seats on the Nexus board.

Tim Dunn, partner at Phoenix, said: “Phoenix is delighted to be investing in Nexus, in partnership with its outstanding management team, whom we have known for many years.

“Nexus offers by far the best solution for corporate customers looking to source vehicles flexibly, through its unique technology platform, IRIS.

“We are excited to be working alongside David, John, Ian and the team to continue Nexus’ rapid growth as part of the technology infrastructure in this very large market.”

David Brennan, CEO of Nexus Vehicle Rental, added: “We have enjoyed working closely with Bowmark since their investment in 2015 and are proud to have delivered such a strong track record of growth and innovation in that time.

“Phoenix’s investment in Nexus now sets us up for our next exciting chapter of growth as the UK’s leading tech driven mobility provider, and demonstrates confidence in the business, senior management and wider team to continue our track record of outstanding performance.

“John Ellis, Ian Cherry and I will continue in our existing Board positions under the new ownership.”

Nexus were advised by PWC, Park Place and Squire Patton Bloggs.