KCP generates £50m revenue boost in exit deal hat-trick

Key Capital Partners (KCP), the private equity firm with offices in Leeds and London, has completed three deals to secure a revenue boost of £50m.

KCP closed Q4 2018 with a hat-trick of exits that generated a combined return of three times the initial investment.

In October, the company sold its interest in Smethwick-based glass processor MI Glass to the management team in a deal backed by Clydesdale Bank.

The following month, KCP-backed school meals business Alliance in Partnership, based in Oldbury, was acquired by French catering firm Sodexo.

In December, KCP exited Solihull recruitment and training business Siamo Group in a management buyout also supported by Clydesdale Bank.

Owen Trotter, managing partner at KCP, said: “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.”

He continued: “For example, the team at Siamo took sales from £16m to £100m 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 makes equity investments of ranging from £3m to £15m.