Gregory leads KCP’s £5m investment in Dwell
PRIVATE equity house Key Capital Partners (KCP) – led by North West partner Andy Gregory – has made a £5m investment in furniture retailer Dwell.
The investment means that Leeds-based KCP now has a minority stake in the rapidly expanding business.
It plans to launch 33 new high street outlets over the next four years, taking its total number of UK stores to 52 by 2014.
London-based Dwell specialises in retailing furnishings that combine aspirational design with affordable pricing.
Total sales from the company’s high street, online and catalogue channels totalled over £25m in the year to 31 January 2010.
Gregory said: “The challenges facing UK retail over the last two years have been well documented, but Dwell has emerged from the turbulence in a far stronger position due to its first class management team and proven product offering.”
The KCP team also consisted of partner Owen Trotter. Mr Gregory, a former director at ISIS Equity Partners in Manchester, was taken on by KCP in April to seek out North West investments.
He has previously overseen deals involving the Manchester clothing business Americana and Crewe information storage firm Bolden James during six years at ISIS. KCP was set up by former YFM man Peter Armitage three years ago to make investments of £1m-£10m.
Aamir Ahmad, founder and managing director of Dwell, said: “This capital injection from KCP represents the next milestone in Dwell¹s development, having strengthened the management team last year in anticipation of both this investment and our aggressive four-year growth strategy.
“KCP will prove to be a key strategic partner as we look to boost brand awareness and expand the business, beginning with five new stores in the UK in 2011.
“The timing is perfect for expansion, both in terms of the life cycle of the business and conditions in the commercial property sector, where pricing is currently extremely competitive.”
