Private equity sector ‘rebalancing’ says veteran Symondson

PRIVATE equity veteran David Symondson says the sector is still “rebalancing” after the financial crisis, but does have an important role to play in funding business growth.

The 57-year-old deputy managing partner of Electra Partners has strong ties to the North West and will be playing something of a home fixture when he speaks at an global investment seminar on September 25 in Liverpool organised by Investec Wealth & Investment.

Mr Symondson, the son of a Lancashire farmer who will celebrate 30 years with Electra Partners next year, says private equity was in its infancy when he began his career.

“I went to Reading University to read agriculture, then joined KPMG and was one of first hires by founder Michael Stoddart, who set up Electra Partners.

“The business was known as venture capital then – and it was all about taking minority positions in growing companies.

“The sector has seen a lot of growth, with international funds coming in to the UK since then, and is now, after the financial crisis, in a period of correction and rebalancing. The number of active participants is reducing and size of funds is reducing so there is a natural rebalancing taking place.”

Electra, a FTSE 250-listed business, has invested more than £3bn over the last 20 years. At the end of March it had funds under management of over £1.3bn.

In the North West Electra Partners owns  Runcorn company Sentinel Performance Solutions. It was an investor along with Trevor Hemmings in Leisure Parks, which owned Blackpool Tower, and also used to own Preston company Baxi.

“We’d like to have more investments in the North West – and we’ve been looking recently as we have funds to invest.”

Due to a “cautious and expensive” debt market, he says private equity firms are having to put more cash into deals, and also learn to accept “less spectacular returns” in a moribund economic climate.

To hear Mr Symondson’s views on the private equity market at the Investec breakfast seminar at the Crowne Plaza Hotel on September 25, email stephanie.higgins@thebusinessdesk.com