YFM invests in recruitment specialist
FUNDS managed by YFM Group have increased their investment in Darwin Rhodes Group, a specialist in professional financial services and insurance recruitment.
The £1.7m investment by YFM Private Equity and YFM Venture Finance has increased the funds’ shareholding to 31% and values the Darwin Rhodes Group at £8m.
The same investors will provide Darwin Rhodes Group with access to a further £5m follow-on funding to achieve the company’s expansion plans.
Darwin, which is headquartered in London but has regional offices in locations including Leeds, New York and Sydney, is aiming to achieve its growth strategy through acquisitions in both the UK and international markets.
Earlier this month YFM, which is based in Yorkshire, was bought by London-based group Greater London Enterprise (GLE). The move saw YFM become an arm of GLE and remain headquartered in Leeds.
YFM manages funds in excess of £300m as well as two quoted Venture Capital Trusts and manages the Partnership Investment Finance fund and the South Yorkshire Investment Fund.
Darwin Rhodes, which posted profits of more than £1m for the year ended March 31, has clients including HSBC, AIG, Lloyd’s, PricewaterhouseCoopers and Prudential.
Peter Dunphy, chief executive of Darwin, said the company’s growth had been generated through specialising in the actuarial, insurance, pensions and banking and investment sectors.
Mr Dunphy said: “The additional capital from YFM will be used to expand Darwin Rhodes’ unique model, organically and through acquisition, to other industries and geographies.
“We have a track record of successful expansion during all stages of the economic cycle and our board and investors are confident that Darwin Rhodes Group will continue to build on this success over the coming years.”
David Gee, investment director at YFM, said: “The impressive track record of the management team since YFM’s first investment three years ago made the opportunity to invest additional sums an easy decision.
“I am confident Peter and his team can build on their success to date and look forward to working with them to help them achieve their ambitious plans for further growth.”
During the past 12 months Leeds-based YFM Group – formerly called Yorkshire Fund Managers and the most active investor in the UK small-to-medium enterprise (SME) sector – has seen the number of companies backed by its funds rise by almost 20% while the total size of deals completed rose by around 60% to £237m, more than double the 2006 figure of £110m.
