Hotbed of dealmaking for Gateley

BIRMINGHAM law firm Gateley has advised private client investment company Connection Capital and property investment and asset management firm Riverside Capital Group on their joint venture acquisition of Milton Keynes-based private investor network Hotbed. 

Connection Capital and Riverside Capital will take over the monitoring of Hotbed’s investment portfolio which includes property, venture capital and private equity investments. Hotbed’s private equity and property portfolio teams will join Connection Capital and Riverside respectively and all investment activity will be made under the Connection Capital banner.

The acquisition – for an undisclosed sum – will see Connection Capital become the largest operator in the market with access to well over 1,000 high net worth investors. The firm launched in 2010 to help individuals build a broad portfolio of direct private equity investments and since its launch has brought in more than 280 investors with a net worth of more than £3bn.

Riverside Capital has been involved in more than £380m worth of acquisitions, disposals and re-financing across the UK and Channel Islands and currently has in excess of £418m of assets under management.

Tom Durrant, corporate partner in Gateley’s Birmingham office, led the deal along with corporate solicitors James Dyson, Tom Rush and Jenna Ostrowski.

He said: “Private equity investors continue to play a vitally important role in developing businesses in this challenging market and as the economy improves we expect to see significant increases in this type of activity.

“The Hotbed acquisition puts both Connection Capital and Riverside in a really strong position to make new investments in the future.”

Hotbed was founded in 2002 by Claire Madden and Bernard Dale. They left the business in 2008 to concentrate on later stage private equity investments which resulted in the creation of Connection Capital.

Madden said:  “We are delighted to welcome Hotbed staff, investors and portfolio companies to Connection Capital. It’s a perfect fit for our growing business where we see significant growth potential and an added bonus that we know many of the members and portfolio companies from our Hotbed days.”