Mid Market Exit of the Year
CBPE (Perspective)
Perspective, a UK-based financial planning and wealth advisory firm, experienced strong growth following CBPE’s investment in December 2019. In May 2024, CBPE sold Perspective to the US private equity firm Charlesbank, achieving a 5.4x MoC and a 45% IRR. At entry, the business had £5 million EBITDA, which increased fourfold to £22 million at exit.
This deal serves as a prime example of how private equity can drive growth in a highly fragmented market through a focused buy-and-build strategy. CBPE invested heavily in Perspective’s central functions, team, and technology, creating strong foundations before pursuing an acquisitive strategy. Unlike other sector consolidators, CBPE supported management's focus on small, bolt-on acquisitions, often from retiring vendors. This approach was facilitated by building a dedicated M&A team of over 20 professionals, enabling Perspective to complete 53 acquisitions during CBPE’s ownership.
Throughout this period, Perspective maintained its client-centric culture and high advisory standards, distinguishing itself in the industry. The firm also excelled in implementing the new Consumer Duty regulations, setting it apart from competitors. During CBPE’s investment period, Perspective’s Assets under Advisory (AuA) grew from £2.6 billion to £8.0 billion, while the team expanded from 155 to 474 employees.
Inflexion (Chambers & Partners)
In November 2023, Chambers and Partners, a leading global publisher of professional rankings and insights for the legal sector, was sold to Abry Partners, a US-based private equity firm, in a transaction that valued the business at over £400 million, generating a 4.7x return.
During Inflexion's investment, the business was transformed from a paper-based, founder-managed rankings publisher to a digital-first, global B2B information and data services organisation. Chambers’ market leading brand, consistent 20%+ YOY revenue growth and best in class EBITDA margins, combined with proof points of entering new markets such as the US meant that the business was highly attractive to potential buyers.
During the investment, Inflexion committed significant resource to build a data services platform of scale. An experienced leadership team was recruited to lead the transformation of Chambers into a digital and subscription-based product offering. With the support of Inflexion, the business penetrated the high-growth markets of China and Brazil and further accelerated growth in the US, with the latter now accounting for nearly a third of FY23 bookings. Driving this growth was significant investment into the research function, the creation of a world-class sales function, which grew substantially from eleven sales FTEs at Inflexion’s investment to c. 65 at exit together with investment in product and tech.
Palatine (Anthesis)
In July 2023, Palatine exited and reinvested in global sustainability consultancy Anthesis. This highly successful deal generated a 6x return for Palatine and its investors and ensures Palatine has an ongoing stake in a fast-growing international business leading the way on sustainability.
The deal saw global investment firm Carlyle take a majority stake in Anthesis through a secondary buyout, with Palatine reinvesting in a minority shareholding alongside Anthesis’ management team.
A close partnership with the Anthesis leadership team delivered strong and sustainable growth during Palatine’s initial investment period. Revenues grew significantly, while its team more than doubled to 1,250 experts located 39 offices in 22 countries.
Strong organic growth was bolstered by five strategic acquisitions which added international scale and further expertise to the business.
By re-investing, Palatine’s Impact and Buyout funds will continue to deliver on their mission of generating sustainable returns (Buyout) and returns with Purpose (Impact) at a time of growing demand for Anthesis’ services as more organisations embrace the imperative to act with urgency to address the climate crisis.
Voting Closed
To find out who won, book a table at the Mergermarket British Private Equity Awards on 01 October 2024, by contacting Chris Coe.