2017

LIVINGBRIDGE INVESTS IN SPECIALIST CLOUD SERVICES MARKETPLACE GIACOM

Giacom offers a one-stop platform for all of the cloud software, infrastructure and IT support services that an ITC might require to transition an SME client into a public or private cloud environment and then manage them on an ongoing basis. Underpinned by a Microsoft 2-Tier Cloud Solution Provider licence, Giacom has rapidly become the vendor of choice for over 4,000 ITCs enabling the business to service a fast-growing addressable market estimated to be worth c£2.2bn.

Established in Hull in 1999, the investment from Livingbridge facilitates a management buyout of the business by Giacom Chief Executive Mike Wardell and his team from the founder, Nick Marshall. LDC who backed the business in 2016 are exiting and will be reinvesting alongside Livingbridge for a minority stake to support Giacom’s ongoing growth strategy. Yorkshire Bank have worked with Giacom since 2016 and continue to support the business following the new investment. Graham Gilbert will remain as Chairman.

Giacom plans to build on the strong momentum it has generated to date by continuing to expand its network with ITCs, cross-selling more products and services across the marketplace and through strategic M&A.

This is the latest investment from the Livingbridge 6 fund and the fourth Livingbridge investment in TMT in recent months.

Commenting on the investment, Mike Wardell, Chief Executive said:

“Following a year of rapid growth which saw us double our revenues, we believe that now is the right time to secure new financial backing and accelerate our growth plans. Livingbridge’s track record of supporting other high growth businesses such as ours, combined with their experience of investing in the tech sector, means they are uniquely positioned to work with us and I am excited about our future partnership with them. I would like to thank LDC for their backing and support to date and am looking forward to the next phase of our growth strategy.”

Commenting on the investment, Matthew Caffrey, Livingbridge, said:

“We are very excited to be working with Mike and the team during the next phase of Giacom’s growth. The business is extremely well positioned to capitalise on a significant market opportunity underpinned by SMEs increasingly migrating their applications and infrastructure into the cloud. Giacom’s marketplace platform is well placed to continue to disrupt the market and drive growth.

CITIC CAPITAL IN ADVANCED DISCUSSIONS TO ACQUIRE GLOBAL PREMIUM COSMETICS PACKAGING PROVIDER AXILONE

CITIC Capital China Partners III, L.P., a buyout fund managed by the private equity arm of CITIC Capital Holdings Limited (“CITIC Capital”), is pleased to announce it has entered into advanced discussions with funds managed by Oaktree Capital Management, L.P. (“Oaktree”) on 31 October 2017, with a view to acquire Axilone, a global provider of premium packaging solutions to the beauty care industry.

The transaction is subject to legal and regulatory approvals and could complete before the end of 2017.

Headquartered in Paris and part of the Ileos Group, Axilone is a global leading provider of primary plastic and metal packaging solutions for premium lipstick, fragrance, and skincare sectors. Axilone serves leading beauty and personal care companies around the globe, and has subsidiaries in France, Spain, U.S. and China. It also has manufacturing facilities in France, Spain and China.

Axilone Benefiting from the rapid growing trend in the global beauty and personal care industry, Axilone has demonstrated strong growth in the past few years, establishing itself as a leading player especially in the premium lipstick space.

Hanxi ZHAO, Senior Managing Director of CITIC Capital, commented: “We are very excited about this opportunity. Axilone is a leading player in the beauty care packaging sector, serving leading customers globally with unparalleled product quality and service. We are committed to working with the talented management team to continue to tap into the enormous potential in the space, and take their success to the next level globally.”

Jean ROLLIER, Managing Director of Oaktree and President and CEO of Ileos Group, said: “Axilone has enjoyed strong growth during Oaktree’s holding period, and we believe the company is well positioned to continue its trajectory to enhance its leadership in the beauty care packaging category.”

About Axilone

Axilone designs and manufactures premium plastic and metal packaging for leading global cosmetics, perfume and beauty care brands and customers. Headquartered in Paris, the Company was founded in 1971 and has over 2,000 employees in France, Spain, U.S. and China.

LIVINGBRIDGE ANNOUNCES ITS EXIT FROM YSC CONSULTING

Since its £18m investment in 2013, Livingbridge has supported YSC through a period of significant growth. The YSC management team has undertaken a £72m management buy-out with backing from another private equity firm, to pursue the next phase in its growth strategy. The exit has delivered a gross money multiple of 2.4x to Livingbridge clients.

Headquartered in London, YSC today operates from 17 offices in Europe, North America, South Africa and Asia-Pacific. It has a large and fast-growing practice in the US, the world’s largest leadership consultancy market, with offices in New York, Chicago, Boston and San Francisco.

YSC has built a large and diverse blue-chip customer base of more than 400 organisations of which almost 60 per cent are in the FTSE 250 or Fortune 500. Its global clients include Qantas, HSBC, Diageo, GlaxoSmithKline, Tesco, BHP, Li & Fung and BP.

Livingbridge has a successful track record of backing consultancy businesses, having recently invested in specialist financial markets consultancy Catalyst Development, as well as existing investments in clinical service consultancy Four Eyes Insight, global robotic process automation consultancy Symphony Ventures, and procurement consultancy Efficio.

Commenting on the exit, Liz Jones of Livingbridge said:

“We are incredibly proud of what Robert and his team at YSC have achieved throughout our investment. The business has continued to deliver on its global growth ambitions, whilst staying true to its mission of delivering market-leading leadership insight and strategy solutions for its international clients. We feel privileged to have been part of the journey and wish them all the very best for the future.”

Robert Sharrock, Chief Executive Officer at YSC said:

“Our success today has been achieved with Livingbridge’s close support and strategic guidance over the last four years. The business is now in a fantastically strong position and we’re excited about continuing YSC’s journey towards becoming the global number one in leadership consulting”

INNOVA CAPITAL TO ACQUIRE 75% STAKE IN INELO AND OCRK

Innova Capital, a leading Central European private equity fund, is to acquire a 75% stake in Inelo and OCRK, a leading technology-based player active in drivers’ work time management systems for the transportation industry. As a result of this transaction, the fund will also gain exposure to the attractive telematics space.

On 20 October 2017, funds managed by Innova Capital signed an agreement to purchase 75% of shares in Inelo Sp. z o. o. and OCRK Sp. z o. o. S.k. The founders of Inelo and OCRK, Jakub Gieruszczak and Mirosław Stocerz respectively, will partially roll-over their holdings into minority shareholders. This has been the eleventh “Founder Succession” transaction, in which Innova has supported and partnered with Polish entrepreneurs.

“In line with our investment strategy, we are searching for companies with a strong market position which will allow us to capture premium returns. Inelo and OCRK are European leaders, with unique know-how in the area of analysis and drivers’ work time management. They also hold an attractive position in the fast growing telematics market. We are proud to become a shareholder in a Group with such potential!” – said Magdalena Magnuszewska, Partner at Innova Capital, who is leading the investment.

“We strongly believe that based on its solid foundations, know-how, and technology, the Group will continue its dynamic growth, both domestically and in the global market” – said Magdalena Magnuszewska.

Inelo and OCRK provide comprehensive solutions for the transportation industry, mainly in the area of work time management and telematics. The Group’s strong market position is reflected in the fast growth of the business (~30% historical revenues CAGR). It benefits to a large extent from subscription-based revenues – while, thanks to its state-of-the-art technology, the business is highly scalable. At present, the software developed by Inelo is used by control authorities across 13 EU countries. The Group has also built a particularly strong position in the area of WTM and telematics for small and medium-sized fleets.

“Over 15 years on the market, we have become a leader in the drivers’ work time management area, both for transport companies and control authorities across Europe. We hope that thanks to the involvement of this new investor we will be able to accelerate growth and gain new business partners across multiple international markets” – said Jakub Gieruszczak.

In 2016, the total revenues of the Group totalled PLN 58 million, with over 10,000 clients and 3,500 employees of the control authorities using its software. Both companies’ representatives advise the European Commission and conduct training sessions for transportation inspection authorities, police forces, and other control authorities. The Group employs over 450 employees.

ocrk About OCRK: Ogólnopolskie Centrum Rozliczania Kierowców is a leading player handling drivers’ work time management, operating on the Polish market since 2002. It employs over 260 experts and specialists in labour and transportation law of Poland and the EU, with a vast experience in the transportation & logistic industries. OCRK, constantly monitors the legal and economic situation across the transportation industry in Europe, in order to provide the highest quality and most comprehensive services.

About Inelo: Inelo offers top quality software for analysis and management of drivers’ work time and is a developer of telematics solutions offered to the transportation industry. It also renders training and advisory services for the companies operating in the transportation industry. The company employs over 190 people in four areas of its operations: Sales, development/IT, Services and Administration.

LIVINGBRIDGE INVEST IN DISRUPTIVE SOFTWARE PROVIDER MOBYSOFT

Livingbridge today announces its investment in Manchester-based Mobysoft, a market leader in predictive software for social housing providers.

Mobysoft’s core product, RentSense, is a Software as a Service (SaaS) based predictive analytics service which delivers accurate and prioritised workload to social landlords. Using a range of data, RentSense’s algorithms present social housing officers accurate workload information, saving them time, improving efficiency in rent collection and enabling social landlords to mitigate welfare reform and reduce arrears by tens of millions of pounds a year. Mobysoft’s software is used daily by 91 social housing operators managing c.1 million properties, almost a fifth of the sector’s 5.2 million UK based properties.

Growing rent arrears is an issue for the UK’s 1,650 social housing providers with the largest 100 alone facing more than £700m of gross arrears in 2016. Rent reductions and welfare reform including Universal Credit, are adding to cost pressures in the sector and driving the need for greater efficiency.

Founded in 2003 by Derek Steele, Mobysoft has a team of 32, headquartered in Manchester. Livingbridge’s investment will enable Mobysoft to grow its UK social housing market share, increase investment in people and extend the use of predictive analytics into other areas of social housing.

Livingbridge has a strong track record in supporting software businesses and the investment in Mobysoft follows previous investments in Exclaimer, CSC, Eque2, Scriptswitch and Kirona.

Derek Steele, founder and CEO of Mobysoft, said:

“We are delighted to be working with Livingbridge. Mobysoft has grown rapidly over the last few years, as more landlords chose to deploy RentSense. This investment will enable us to bring to market other complementary software solutions, based on predictive analytics, that can help social landlords deliver further significant efficiencies. Livingbridge has strong experience in helping businesses like Mobysoft and I look forward to working with them to take us to the next stage of growth.”

Nick Holder at Livingbridge, said:

“Having known Derek and his team for a number of years now, we are delighted to partner with them. Mobysoft already has a strong market position and great growth potential, in a sector Livingbridge knows well. With the compelling combination of sector-leading software, an entrepreneurial management team and the capital to pursue its growth ambitions, this is an incredibly exciting opportunity.”

As part of the investment Ken Briddon has been appointed as chairman at Mobysoft. Ken has worked for IT and software businesses for over 40 years, including heading up PLCs. Ken has over 16 years’ experience as the chairman or NED of private equity backed software and services businesses, successfully advising and steering them through the transition to deliver further growth and profits.

The deal was led for Livingbridge by Nick Holder, Charlie Ross and Pete Clarke out of the Manchester office.

LIVINGBRIDGE INVESTS IN SPECIALIST FINANCIAL MARKETS CONSULTANCY CATALYST DEVELOPMENT

Livingbridge today announces its investment in specialist financial markets consultancy Catalyst

Development (“Catalyst”). Founded in 1994, Catalyst provides regulatory-driven change, organisational improvement and talent development programmes to global financial markets companies. Catalyst has worked with more than 70 clients in over 30 financial centres worldwide, including nine out of the world’s top 12 investment banks, and has mentored more than 250 of the most senior figures in financial markets. Catalyst holds the UK’s highest business accolade, The Queen’s Award for Enterprise, in recognition of the firm’s global impact.

Global banks spent about $30bn on consultancy fees in 2016, up from $17bn in 2008. Client demand for Catalyst’s specialist services is significant, driven by far-reaching G20 commitments to making markets safer in the wake of the financial crisis. Catalyst’s clients are now increasingly requiring ‘specialism at scale’ to tackle large, complex programmes of transformational change.

Livingbridge’s investment will enable Catalyst to address the escalating requirements of the financial sector and grow its client base by accelerating its service development, strengthening its infrastructure, and expanding its talent development and acquisition strategy with the aim of trebling headcount.

Catalyst also intends to increase its international presence, and Livingbridge has committed to provide additional capital to pursue strategic acquisitions.

Livingbridge has supported many consultancy businesses and the investment in Catalyst follows investments in clinical service consultancy Four Eyes Insight, recruitment consultants such as The Up Group and procurement consultancy Efficio.

Commenting on the investment, Andrew Middleton, CEO at Catalyst, said:

“Since the financial crisis, there has been a growing need for expert, trusted advisors to help financial institutions navigate change. We have long-standing relationships with many of the world’s largest financial institutions and a strong reputation for excellence. Our ambition is to become Europe’s leading financial markets specialists. Working with such a respected investor as Livingbridge will enable us to build on the momentum we have already generated and accelerate our growth to establish Catalyst as the unrivalled choice for specialist financial markets consultancy.”

Paul Landsman at Livingbridge, said:

“Andrew and his team have been very successful in establishing Catalyst as a premier speciality consultancy for the financial markets and we are delighted to be working with them to help them realise the next stage in their development both through organic growth and acquisitions. We have experience of working with high growth consultancy firms and will be looking to bring some of this experience to Catalyst as the business looks to expand its product offering and grow its team.”

CAPITON INVESTS IN FAST GROWING SERVICE COMPANY BWTS

About the Company

BWTS offers maintenance and other services for wind power plants. With tailored servicing programs and advanced maintenance processes, BWTS ensures consistent availability in wind power plants, both onshore and offshore. BWTS’ customers primarily consist of wind power plant manufacturers.

BWTS’ portfolio of services includes regular maintenance, certification, and servicing activities for wind power plants. This is with the objective of identifying risks at an early stage, and therefore optimising service life and availability of wind power plants.

The transaction

BWTS has enjoyed rapid growth over recent years. The two founders and managing directors have retained a significant stake in the company, and will continue to jointly manage BWTS. capiton will be supporting both entrepreneurs in further expanding and internationalising the enterprise. As part of this process, the company also intends to expand the BWTS product portfolio through acquisitions. Plans for the company include expansion of the business model to incorporate rotor blade maintenance, significantly increasing the proportion of offshore work, and
acquiring additional customers.

FSN CAPITAL III DIVESTS VINDORA TO ACADEMEDIA

FSN Capital III has entered into an agreement to divest Vindora to AcadeMedia, Northern Europe´s largest education company.

Vindora is a leading education provider, primarily active in the upper secondary segment, with a market leading position in apprentice based vocational education. Vindora has for almost two decades contributed to society by addressing one of the main challenges, youth unemployment. Vindora’s unique education model, based on a close collaboration with thousands of small and medium sized companies across Sweden, has proven to be highly effective in enabling the students to build relevant work experience and thereby enhance their job placement rate.

vindora

Marcus Egelstig, Principal at FSN Capital AB, acting as adviser to the FSN Capital Funds, says:
”We are proud of Vindora’s development during FSN Capital’s close to eight-year ownership period. Under the leadership of CEO Jarl Uggla, Vindora has continuously developed its successful education model and invested heavily in structure and processes to build a solid platform for the long run. To join forces with the industry leader, AcadeMedia, means that Vindora has optimal conditions for continued positive development”

TURKVEN INVESTS IN MNG CARGO

Turkven invests in MNG Cargo.

MNG

MNG Cargo is one of the leading Courier, Express and Parcel players in Turkey. The Company has an established network of 19 regional offices, 900 branches, 25 sorting hubs and more than 8,000 employees as of year end 2016.

Industry: Courier Express and Parcel

Strategic Value: Leading national CEP player with 900 branches

Year: 2017 –

Website: www.mngkargo.com.tr

CITIC COMPLETES ACQUISITION OF ANSELL SEXUAL WELLNESS BUSINESS

CITIC Capital Completes Acquisition of Ansell Sexual Wellness Business in Partnership with Humanwell

CITIC Capital China Partners III, L.P., a buyout fund managed by the private equity arm of CITIC Capital Holdings Limited (“CITIC Capital”), is pleased to announce that it has completed the acquisition of Sexual Wellness business unit (“SW”) of Ansell Limited (ASX: ANN, or “Ansell”) on 1 September 2017, together with Humanwell Healthcare (Group) Co., Ltd. (“Humanwell” and collectively, the “Buyer Consortium”).

The acquired Sexual Wellness business will now become an independent company, Lifestyles Holdco Pte. Ltd. (“LifeStyles”). The newly formed LifeStyles is a global leader in sexual wellness sector, possessing a broad product range including condom, lubricant and other related products. In particular, it has the second largest market share in condom market with leading latex condom brands in their respective markets including: LifeStyles, Jissbon, MANIX, Unimil, Blowtex, etc., as well as the fast growing innovative non-latex condom global brand SKYN. Xuehai WANG, Chairman of Humanwell, said: “We are pleased to have completed the acquisition of a suite of successful global brands in sexual wellness sector. Humanwell has a long history and experience in the sexual wellness sector. Together with CITIC Capital and the management team, we are confident that we will unlock the potential of these brands, and achieve faster growth, both in China and globally.”

Hanxi ZHAO, Senior Managing Director of CITIC Capital, said: “The business we acquired already has a very strong position globally, with ample room for growth. We look forward to working together with Humanwell and the management team to further strengthen the company’s leadership position in the sexual wellness space.”

Jeyan HEPER, CEO of LifeStyles, remarked: “With the support from Humanwell and CITIC Capital, the management team is fully committed to continuing to build our brands, better serve our consumers, and drive growth in each of the markets that we are in.”