Leeds-based private equity firm Key Capital Partners enjoyed a successful end to 2018 following the exit of three portfolio companies in the last quarter, generating a combined return of three times the initial investment and with a total value of over £50m.
In October, the firm sold its interest in glass processor MI Glass, based in Smethwick in the West Midlands, to the management team in a multi-million-pound deal backed by Clydesdale Bank. The following month saw Oldbury school meals business Alliance in Partnership acquired by French catering company Sodexo. In December, Siamo Group, an award-winning Solihull recruitment and training business, also underwent a management buyout with backing from Clydesdale Bank.
KCP managing partner Owen Trotter commented: “It’s always extremely satisfying to deliver great returns to investors, but it is tinged with sadness as we see three talented management teams leave our portfolio having worked very hard and delivered great results. As well as having provided investment to enable their growth, the KCP team has also worked closely with all three companies to provide strategic advice and help enable these dynamic businesses to realise their potential.
“For example, the team at Siamo took sales from £16m to £100m under KCP ownership; while AIP doubled sales and acquired two businesses. We’ve certainly enjoyed working with all three management teams and wish them well for the future.
“We are now on the lookout for more entrepreneurial firms with ambitious management teams who want to take control of and develop their business.”