Millionaire-maker private equity house secures £55m for SME investment

LEEDS-HEADQUARTERED Key Capital Partners has secured £55m in their first closing.

With it, KCP wants to invest between £3m and £15m in profitable businesses, through management buy-outs, equity release and development capital deals.

The firm, which has offices in Leeds, London and Birmingham said they want to invest in businesses where there is the opportunity to double the profits of the business over a three to five year period.

It says it is “confident” of reaching its £80m hard cap over the coming months.

Owen Trotter, Leeds-based managing partner of KCP said: “There are surprisingly few places where SMEs can secure equity investment of this size and it is expected to soon become even more difficult.

“Having established a strong track record working with entrepreneurial businesses in the lower mid market, we have developed a real expertise in this important, but underserved sector and this is where we want to be.

“The businesses in which we have invested have also reaped the rewards – the companies we have invested in have created thousands of new jobs and over 20 of the managers we have backed have become millionaires.”

Chairman Tom Lamb added: “As one of the leading fund managers in the smaller buyout arena, we have built up a team which we believe is more experienced than any in the market and we have proved able to use our expertise to make a real difference.

“Whether it’s assisting with sales and products or developing the management team and IT systems, we have a very hands-on approach, making decisions swiftly and working as close partners with our portfolio of businesses.”

KCP’s first fund was launched in 2007, and since then it has invested £65m in 15 businesses across the UK.

It has successfully exited five of these businesses including the secondary MBO of Kent-based healthcare services provider Nurse Plus in December 2014; the sale of Manchester-based bespoke interiors supplier Neville Johnson in May 2014; and the sale of TSC Foods in Scunthorpe in January 2014.