North West England Nations & Regions - Private equity and venture capital creating public value - BVCA
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Nations & Regions //// April 2021 Nations & Regions North West England Private equity and venture capital creating public value
Nations & Regions:
North West England //// 2
About this report
This report has been produced by the British Private Part one of this report provides an overview of how the industry
Equity and Venture Capital Association to highlight operates; part two looks at the statistics and data from the North
the public value of the industry in the United West, to demonstrate the value of private equity and venture capital
Kingdom and how, in 2021, it can help address a to the region and the importance of the region to the industry.
Part three offers further insights into the contributions made by
range of policy challenges and opportunities. “We have had a presence
private equity and venture capital though a series of case studies,
featuring some fantastic businesses backed by BVCA members. in the North of England for
over 15 years because of the
This is the first of a series of publications that follow on from region’s rich entrepreneurial flair
our New Horizons report, where we will take a deeper look at and ambition. The calibre of
activity within the nations and regions of the United Kingdom. businesses and management
In this initial edition, our focus is on the North West. teams have continued to think
creatively and achieve great
With a significant presence in the UK, developed over the past things over the last year, in
30 years, private equity and venture capital provide companies spite of the challenging climate.
with the finance and know-how to deliver sustainable business Many of these fast-growing
growth. Active ownership, over the medium to long term, delivers businesses could benefit from
economic and social value to those involved in these businesses private equity investment to
(from employees, management and owners on the one hand provide funding and expertise
to customers and suppliers on the other) and to a wide group to accelerate their growth and
of stakeholders (from local communities and local and regional reach their full potential” - Carl
economies to national policy makers focused on issues such as Wormald, Partner and Head of
climate change, diversity and inclusion and social justice). the Inflexion Manchester office.”
Both private equity and venture capital are focused on delivering Carl Wormald
sustainable growth for the companies in which they invest: venture Partner and Head of the
capital firms typically support early stage and younger companies, Manchester office, Inflexion
holding minority stakes in the businesses, while private equity firms
typically acquire controlling stakes in more established businesses.
bvca.co.uk //// @bvca
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Private equity and venture capital at a glance
Employment Footprint Focus
80,000 420 86%
People are employed in the North companies are currently backed of industry backing was directed
West by companies backed by by private equity and venture at small and medium sized
private equity and venture capital capital in all nations and regions businesses in 2019
of the UK
9%
of UK investment
Investment scale Sector expertise Regional hub
funding went
£2.6 billion
to North West
businesses1
has been invested in 210 Business Products and Services The North West hosts the UK’s
companies in the past 3 years and Consumer Goods and most significant private equity
Services have been leading and venture capital hub outside of
sectors for recent investment by London and the South East
the industry in the North West
1As a proportion of total investments in the UK by BVCA members
between 2017-2019
Source: BVCA Report on Investment Activity 2019
bvca.co.uk //// @bvca
Nations & Regions:
North West England //// 4
Contents
Creating public value
in the North West
//// 5
Part one
Understanding private equity and venture capital
//// 6-7
Part two
The North West in numbers
//// 8-11
Part three
Case studies: private equity and
venture capital in action
//// 12-28
Contacts
//// 29
bvca.co.uk //// @bvca
Nations & Regions:
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Creating public value in the North West
The North West is a hub for technology 5,000 job seekers since March 2020
businesses, at all stages of growth. The to get back into employment during
region’s success in incubating innovative, the height of the pandemic, the very
high value companies is borne out by definition of “doing well by doing good”.
the fact that the North West is home to In a region which experienced longer
almost half of all UK unicorns. Private lockdown restrictions than many other
capital helps to turn North West innovators parts of the country, the value of securing
such as The Hut Group into national work for those unemployed by the
and global powerhouses, supporting pandemic cannot be underestimated.
the competitiveness of Global Britain.
Private capital invests in potential The private equity and venture capital
– good ideas, good people, good Private capital has also delivered industry is playing its part in funding the
businesses. And potential is found the regeneration of one of the North recovery, investing across the region,
right across the United Kingdom. West’s oldest leisure destinations its people, businesses and ideas. By
This report is the first in a series to – Blackpool. Merlin Entertainments doing what they do best, private equity
highlight the investment by private worked in partnership with the local and venture capital help to drive growth
council to deliver an almost ten-fold and success across the country - our
equity and venture capital in the
increase in employment through economic value and social value
nations and regions of the UK.
sustained and successful investment forming the two core elements of
in the city’s cultural landscape. our public value to the whole UK.
In this first edition, we focus on the North
West of England, a region that boasts a
The North West businesses backed
proud industrial heritage and a proven
by private capital are also helping to
record of driving economic growth and
deliver the UK’s Net Zero ambitions,
success across the wider UK. The North
with firms such as Vital Energi
West is an exciting and dynamic business
supporting clean energy generation
landscape, with leading universities and
right across the country from Edinburgh
talented people eager to innovate. It is
University to Heathrow Terminal 5.
little wonder, therefore, that the North Michael Moore
West is the second largest hub for Director General, BVCA
New companies grown in the North West
private capital investment in the UK
with private capital are being created April 2021
after London and the South East.
with ESG aims at their core – with firms
such as Back2Work supporting almost
bvca.co.uk //// @bvca
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Part one “The North West is a
resilient region and, if
anything, the turmoil
Understanding
of the last year has
spurred many of our
business leaders to be
even more determined
private equity and to succeed. With
disruption comes
opportunity, increasing
the case for innovation,
venture capital diversification and
strategic acquisitions
- we’ve completed six
deals during lockdown
including Back2Work
as well as several bolt-
ons for our portfolio
companies.”
Gary Tipper
Managing Partner, Palatine
Private Equity
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Understanding private equity and venture capital
1 million
Funding the future Private equity firms will work alongside Institutional investors in private equity and
management teams to support the venture capital, including pension funds,
Private equity and venture capital are growth and development of the insurance companies and endowments,
types of investment for companies with companies they invest in. To generate benefit from strong returns that flow to
investment returns they must sell at a People employed by firms their ultimate beneficiaries.
high-growth potential and their funding
can often be part of the growth journey for higher price which means the company backed by private equity and
many small and medium sized companies. needs to increase revenues and profits; venture capital in the UK BVCA research has shown that, although
Venture capital backs founders while therefore, the interests of the private a long-term asset class, private equity
private equity often allows entrepreneurs equity firms and their investee companies and venture capital has had strong
and parent companies to pass ownership are closely aligned. performance generating higher annual
on to their management teams. In addition,
private equity and venture capital funding
allows a company to expand its reach,
Venture capital funds work with founders
of high-risk, early-stage companies with
10.5 million
returns to investors than listed markets.
14.2
take risks, scale, and/ or weather the significant potential for growth. In turn,
People employed by firms
bumps on the road to becoming a larger, for injecting capital, venture capital funds Over
backed by private equity and %
mature business. receive an ownership stake, giving funds 10-year
venture capital across Europe
a direct interest in the success of the period
The length of the investment varies, but is company. Venture capital has an outsized Annual returns
generally between three and seven years, influence on the economy and society; a from private equity
and venture capital
4,290
allowing for a longer term view to be taken. relatively small venture investment early
in a company’s life can help to create a
transformational, global business.
companies currently invested
in by private equity and venture
8.1 %
Over
10-year
capital funds managed in Annual returns period
the UK. Most of them small or from FTSE All-Share
medium size enterprises.
Sources: BVCA Key Facts document, ‘BVCA Performance
Measurement Survey 2019’, Oct 2020 ‘Private Equity at Work’, Invest
Europe, Sept 2020
Part two bvca.co.uk //// @bvca
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Part two “It is very important
for the UK economy
that investment is
The North West
available to businesses
throughout the entire
country. As investors in
high growth companies,
in numbers we are committed to
ensuring that our reach
extends right across
the UK. The North West
is a great place to do
business and has some
exceptional companies.”
Calum Paterson
Managing Partner, Scottish Equity
Partners (SEP)
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North West in numbers:
Regional overview
From Blackburn to Blackpool, The birthplace of the industrial revolution,
Manchester to Merseyside, Wigan to the region is now the host to a busy
Warrington, the North West of England tech start-up scene. Firms such as The
is vibrant and exciting. Co-operative Group, B&M and United
Utilities were founded in the North West.
And with 12 universities across the region Cumbria
A significant force supporting a thriving pool of talent, our
within the UK economy case studies illustrate the ideas and
knowledge driving the success of the
North West. Lancashire
Covering
Manchester
5,469
Mersey
A growing number of private equity and
venture capital firms are investing in Cheshire
businesses in the North West. BVCA
square miles
members invested over £2.6billion in
businesses head-quartered in the North
West between 2017-2019.
Home to over
7 million
people
Representing nearly £2.6 billion
10%
invested in businesses head-quartered
in the North West between 2017-2019.
of UK GDP
Part two bvca.co.uk //// @bvca
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North West in numbers:
Investment and employment
Investment Businesses ...of which, Holding period
£2.6 billion 420 210 5-6 years
invested in the North West by BVCA private equity and venture received investment between 2017 Our members invest in the longer
members between 2017-2019 capital backed businesses in the and 2019 term, with an average holding period
North West of 5-6 years in the North West.
Employment
Average investment size SMEs 80,000
people employed by private
£1-2 million 86%
equity and venture capital backed
businesses in the North West…
was the median investment over
the past 3 years - supporting
of businesses supported by
private equity or venture capital
...but the North West is no
stranger to big deals with several
…of which, 50,000
people employed by businesses
lots of small and medium sized in the North West are small or of the larger deals attracting
which received investment
businesses medium sized… investment of over £100million.
between 2017-2019
Part two bvca.co.uk //// @bvcaNations & Regions:
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North West in numbers:
Sector focus
Number of investments in hot Average investment size across The North West was home to six of Tech businesses employ the third
sectors in 2019 hot sectors in 2019 the UK’s 14 digital unicorns in 2020 largest number of people within
PE and VC backed businesses in
31 £2.8 million
the North West
Strong start
43%
Tech up scene / Tech
incubator
14
Healthcare
for tech
£0.7 million
Healthcare
Tech
businesses
Average investment in 2019 ...these sectors support over The region is home to …which collectively attracted
50% of the jobs in private equity
£20 million £12.4 million
or venture capital businesses in
the North West
The sectors with the largest average
investment size are those focused of
12
universities
in spin out investments in 2019
consumer and business products
and services...
Sources: BVCA Report in Investment Activity 2019, UK Tech News,
Parkwalk / Beauhurst, ‘Equity Investment into UK Spinouts
Part two bvca.co.uk //// @bvcaNations & Regions:
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Part three “Endless is proud to be
investing in businesses
such as Bright Blue
Case studies
Foods in the North
West. As a cornerstone
of the UK economy,
the region has an
unrivalled breadth of
industries and sectors,
a diverse talent pool,
management teams with
entrepreneurial drive
and a tremendous track
record for investment
and growth.”
Tom Jack
Partner, Endless LLPNations & Regions:
North West England //// 13
North West case studies
These case studies from across the North West demonstrate how private equity and
venture capital funding and expertise are helping businesses innovate, grow and weather
turbulent times.
Tech / FinTech Pharma
1 AccessPay 6 Chargepoint
Supported by Beringea Supported by LDC (exited in 2021)
2 Culture Shift 7 Fishawack
Supported by Praetura Ventures Supported by Bridgepoint
3 LIMA 8 Liverpool ChiroChem
Cumbria Supported by Maven Capital Partners Supported by Deepbridge Capital, Praetura
Ventures and NPIF - Maven Equity Finance
4 Nivo
Supported by GP Bullhound
5 Peak
Supported by Oxx, Praetura Ventures and MCC
Lancashire Consumer products B2B
10 14
12 9 Back2Work 13 The Belfield Group
Supported by Palatine Private Equity Supported by NorthEdge Capital
Manchester
1
13 10 Merlin Entertainments 14 Bright Blue Foods
4 5
Mersey 3 Supported by Blackstone Group Supported by Endless LLP
15
11 8 9 2
6 WEALTH at Work
11 15
British Engineering Services
7
Supported by Equistone Supported by Inflexion Private Equity Partners
Cheshire
12 Vital Energi
Supported by Scottish Equity Partners (SEP)
Part three bvca.co.uk //// @bvcaNations & Regions:
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Tech / FinTech
AccessPay
While it is often consumer tech firms expertise to help it scale, and Beringea,
receiving public attention, innovation a transatlantic venture firm with more
and growth are taking place at pace than $750million under management, led
across the FinTech spectrum. a £9million round in 2018, representing Sector
FinTech
one of the largest ever investments
Across the country, too. The North West in a Northern FinTech company. Supported by
is home to a thriving start-up scene Beringea
and many leading FinTech businesses With Beringea on board, AccessPay was
are gaining national recognition. immediately able to scale its infrastructure, Location
ensuring the utmost security of the Manchester
This includes AccessPay, a Manchester- sensitive data it handles. The investment
Number of employees
based payment automation provider also allowed for product development 78
offering solutions to simplify and and the acquisition of local talent – taking
digitise the many manual processes current employee numbers up to 80.
faced by finance departments.
2020 and future growth
AccessPay’s online platform connects
businesses’ back-end systems with global AccessPay’s 2020 expansion was
banking and financial services providers. substantial. Remote working meant many
“Beringea has recognised
Clients can process payments securely, needed an instant switch to an online
accurately, on time and with confidence,
the challenges the current
solution, and servicing this demand was
regardless of physical location. not a problem with Beringea’s guidance
financial services model poses
on cash planning and business strategy. for treasury teams and the
Seeking venture backing In 2021, UK growth is still AccessPay’s opportunity it presents for
primary objective but global expansion AccessPay to grow its market
Established in 2012, AccessPay has may not be too far away. The business share, in the UK and beyond,
seen yearly growth, with particularly rapid already deals with a number of international and is helping us with our
momentum post-2015. As corporate client subsidiaries and, as a transatlantic mission of transforming the
numbers closed in on 500 and transaction investor, Beringea is well placed to landscape.”
volumes increased into the tens of millions, support their overseas growth.
the need to scale-up became paramount.
Anish Kapoor, CEO
This led AccessPay to look a venture
capital partner with the funds and
Part three bvca.co.uk //// @bvcaNations & Regions:
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Tech / FinTech
Culture Shift
Organisational culture is important. It the plan is exactly that; to take an amazing Most importantly, though, more firms and
reflects a company’s attitude, its ethos, idea and bring it to more people. their employees have access to the platform.
the way staff interact and the decisions
they make. It’s what makes employees Upon investment, Praetura got hands And underpinning all this is the culture Sector
HR-tech
feel valued and safe at work. on. They began to prepare the company of Culture Shift. The desire for their
for scale, by building out the senior software to do better is at the core of Supported by
In some cases, this can go awry. And when management with an experienced Sales their business and will not fall by the Praetura Ventures
that happens, employees at the short Director, Finance Director and Head of wayside as their journey continues.
end of the stick may find it hard to speak Customer Success all joining to head up Location
out – particularly if the culture they work newly created functions within the company. Manchester
within is not one of openness and honesty.
Number of employees
Praetura used their business expertise
Pre-investment: 6
Leading the change in how toxic cultures to update the company’s long-term Post-investment: 18
are reported on and, ultimately, dealt commercial strategy to make sure
with is Culture Shift, a Manchester- expanding into new sectors was viable.
based tech-for-good start-up. Product design, branding and marketing
workshops were all planned and executed
Passionate about people, through in alignment with the new strategy.
its digital platform the firm allows
employees to anonymously report Finally, with all things ship-shape,
bullying and harassment which, in Praetura was able to connect Culture “This investment has enabled
turn, empowers leaders and senior Shift to its established business network us to hire skilled and talented
teams to create positive and lasting – putting the company directly in touch professionals who share our
change for their entire organisation. with their corporate target market. values and have the expertise to
help us achieve our ambitions. It
Backing for growth Future plans has also helped us expand our
sales and marketing resource
Although only a few years old, the As a result of Praetura’s involvement, Culture helping us grow into other
business has established itself as a leader Shift is now very much on the up. Average sectors.”
in the higher education sector with early contract values are now four times higher,
adoption from over 60 UK universities. annual recurring revenue has grown by
three times in the last 9 months, employee Gemma McCall, CEO
But options for further expansion into the numbers have tripled and growth in new
corporate world are vast, and with the sectors is the key objective for the business.
backing of venture capital firm Praetura,
Part three bvca.co.uk //// @bvcaNations & Regions:
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Tech / FinTech
Lima | A founder’s story
LIMA Group provides UK private a real hive of activity. People wanted to too. They continually help us identify new
and public organisations with the IT progress and utilise IT, and there was opportunities, which keeps us expanding,
solutions and services they require to such a good energy around the city – it and were instrumental in us changing
stay ahead of their competition. The was the perfect place for us to be. banks and securing the right funding for Sector
Information Technology
BVCA connected with Lisa Thornton, future growth. Despite their investment
CEO, to find out the story behind BVCA: At what stage of the coming relatively late on in our journey Supported by
the business and how private equity [2019], their support has made a huge
journey did you start to consider Maven Capital Partners
helped them on their journey. difference in a short period of time.
private equity backing? Location
Salford
BVCA: Where does the story start? BVCA: With that in mind, how did
L: Things were incredibly positive for
us but, as we evolved as a business, they help you weather 2020? Turnover
Lisa: In 1997, Paul [LIMA’s co-founder] it became clear where we needed to £16.3m
and I found ourselves with a life choice: strengthen our skills. Private equity seemed L: Who would have predicted that the Number of employees
to remain in a business that had recently like a great way of acquiring that guidance year after their investment would have 61
been acquired or to branch out on our own. and targeted expertise to help us progress brought with it a global pandemic? LIMA
We’d built up some strong contacts during to the next level. The due diligence we worked incredibly hard to support our
our previous employment and decided to carried out before even engaging any customers with their move to remote
ask them, “can we help you with your IT?” potential firms is one of the most insightful working. We are very proud to have been
processes we’ve ever completed too – the able to bring Gloucestershire Hospitals
And so, LIMA was born. It’s funny to think amount that we learnt about our business NHS Foundation Trust fully online, enabling
that we originally saw it as a 6-month and the marketplace was incredible and over 2,000 staff to log on remotely every
venture, however, as we built great has been a real factor in our growth. single day at the height of the pandemic.
relationships with local businesses, the
opportunities kept presenting themselves
BVCA: Why did you choose At the same time we wanted to accelerate
and we couldn’t just stop. We never investment in a number of strategic
thought that 24 years later we’d have over Maven and how have they helped
initiatives and Maven immediately worked
70 employees and a turnover of £15m. you progress? with us to ensure we could do this and
have sufficient cash reserves for the next
BVCA: And why was Manchester L: Maven are a strong cultural fit for us. 12-18 months. Their support for our
an appealing base? We still run the business how we want to ambitious growth plans really reinforced
run it, but with the benefit of their technical their long-term commitment to us. Lisa Thornton, CEO, Lima
and sector expertise. They also challenge
L: I’m born and bred in the City of
our performance and governance –
Salford and LIMA’s first office was my
something we completely welcomed.
house! Aside from that, Manchester was
Their connections proved invaluable, Sources: BVCA Report on Investment Activity , Lima Networks 2019
annual accounts
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Tech / FinTech
Nivo
Obtaining a regulated financial product Starting small For now, Nivo is firmly focused on
can be a headache involving printing expanding its foothold in the UK
and signing forms, snail-mailing Nivo began life in London. The four market. But, with strong growth since
them back, hunting down original its last funding round and further Sector
founders met at Barclays and it was
FinTech
documents or wasting time on the the bank’s accelerator programme, rounds possibly on the horizon, it might
phone listening to hold music. powered by Techstars, that gave insight not be long before this VC backed Supported by
into what life is like in a start-up. company makes it big overseas. GP Bullhound
Surely these processes can be
made simpler, more streamlined and After six months of incubation the Location
more accessible? For tech start- team spun Nivo out of Barclays and Manchester
up Nivo, the goal is exactly that. began looking for a new home. It was
Number of employees
the busy tech scene, the pools of 15
Their secure instant messaging platform talent and access to investors that led
connects consumers to financial them to Manchester – a city perfectly
institutions, removing the need for positioned to play host to their growth.
cumbersome traditional methods.
Users can safely e-sign important Venture backing
documents or verify their ID with a few
taps, or chat directly with a business In May 2019, Nivo looked to venture
about a product they’re interested investment to help expand their business
in, at a time that works for them.
“We got to the point where we
and a £2 million funding round was jointly
simply needed more hands
led by GP Bullhound and Angel CoFund.
And by making things easier, Nivo on deck and it was venture
widens access to financial products for With the objective being to bring backing that enabled us to bring
consumers who may once have been their product to more people, Nivo people on board. In doing so,
deterred by archaic barriers to entry. needed more manpower and used you must think carefully about
The app already works closely with the investment to scale internally, organisational culture, too, and
a number of credit unions, as well as growing a workforce of four to 15. advice from our investors around
large banks, lending brokers, lenders this was incredibly helpful when
and professional services companies With this strengthened core, the business recruiting.”
– vastly improving consumer choice. was able to onboard more clients on either
side of the app, all the while improving Mike Common, CEO
the product and its ease of use.
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Tech / FinTech
Peak
Artificial intelligence (AI) was once and gaining customers in the US,
confined to science-fiction, but with Europe, India and the Middle East.
the advancement of technology we’ve “It’s becoming impossible to run a company
reached a watershed where AI is To continue this trajectory and service without AI. Modern businesses are complex Sector
Tech – AI / SaaS
implementable in business processes. the growing global demand for their and operate in an ever-changing world. Making
products, Peak looked to venture capital critical decisions without AI would be like driving
Supported by
For Manchester-based tech scale- investors and Oxx, a specialist Software- a Formula 1 car while wearing a blindfold. Our Oxx, Praetura Ventures and MMC
up, Peak, accessibility to AI is the as-a-Service fund, were the perfect fit. In Decision Intelligence software empowers day-
principal priority, as they strive to September 2020, Oxx led a £15million to-day decision makers across businesses such Location
put AI “at the heart of commercial investment round, and were joined by as PrettyLittleThing, KFC, PepsiCo and more.” Manchester
decision making” for all companies. existing investors MMC Ventures and
Praetura Ventures, bringing Peak’s Richard Potter, CEO
Peak’s software enables companies, total funding raised to £31million since
across sectors including retail, consumer their seed investment round in 2016.
goods, and manufacturing, to easily
embed AI into the core of their operations Future growth
and rapidly see the results of AI-
enabled commercial decision making. Oxx’s expertise in global expansion
and scaling commercial operations,
The application of AI to make better
“We’re delighted to have
and extensive network, will help
commercial decisions and improve business secured this new funding in an
Peak bring Decision Intelligence to
performance is called Decision Intelligence. many more businesses globally.
oversubscribed round. After
a wide search, we found Oxx
Decision Intelligence uses AI to unlock In 2021, Peak plan to open new locations to be the standout European
the power of a business’s most in the US and India, and continue venture firm thanks to their deep
valuable asset, its data, by helping expanding their world class Engineering domain knowledge, strong B2B
people make decisions over complex and Product teams. With this fundraise, SaaS experience and expertise,
information faster, more consistently, supportive and founder-friendly
and more accurately than ever before. Peak has the technology, strategy, services outlook and strong ethics which
and support to help many more companies align to our own.”
Venture backing succeed with Decision Intelligence. Peak
will hire more than 100 new employees Richard Potter, CEO
2020 saw the business grow outside of globally and continue to set ambitious
their UK market, doubling their revenues diversity and inclusion goals, which is
central to Peak’s culture, as well as Oxx’s.
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Pharma
ChargePoint Technology
Based in Liverpool, ChargePoint across North America. Since then, it LDC exited the business to US private
Technology manufactures and delivers has pursued a successful international equity firm Arcline Investment Management
sterile containment products – including expansion strategy, accelerating in 2021. ChargePoint will now be able to
specialised bags, bottles, valves and global sales of its highly technical and further accelerate its product development Sector
Manufacturing
extraction systems – to companies across innovative containment solutions. pipeline, and will be empowered to
Europe, Asia and North America. deliver its core range, as well as new Supported by
The partnership with LDC also gave the innovations and technology platforms, LDC (exited in 2021)
Its leading technology is used by the business the financial firepower to increase to market faster than ever before.
world’s top 50 global pharmaceutical investment in new product development, Location
manufacturers and helps transfer allowing ChargePoint to expand its market Liverpool
highly potent and sterile powders share by manufacturing complementary,
Turnover
reliably and safely, keeping single use products alongside continuing
£12.7m (year ended Jan 2020)
ingredients free from contamination improvement of its core range.
and those working in advanced Number of employees
manufacturing facilities protected. The partnership with LDC helped 80
ChargePoint’s management team to
Established over a decade ago, the develop new products, and successfully
demand for ChargePoint’s products has launch a series of new solutions including
grown year on year and the increasing its VERIFi™ platform, a smart monitoring
interest from companies overseas led technology that provides information on
the business to seek the guidance equipment usage allowing preventative
on how to expand internationally. maintenance, and AseptiSafe® Bio, a
specialist valve for customers working “We partnered with LDC to help
Turning on the growth tap with toxic and sensitive substances. us expand our product range
During its four-year partnership with and accelerate our international
LDC, the private equity arm of Lloyds LDC, ChargePoint increased revenues expansions plans. Today,
Banking Group, first backed ChargePoint by approximately 30 per cent. we’re a growing international
CEO Chris Eccles in 2017, providing business that serves most of the
immediate investment to help the world’s leading pharmaceutical
business to capitalise on this growing businesses.”
international demand for its products.
Chris Eccles, CEO, ChargePoint
Following this, ChargePoint was able
to fulfil its increasing order book and
saw the use of its technology extend
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Pharma
Fishawack Health
Fishawack Health helps pharmaceutical Bridgepoint is enhancing Fishawack’s M&A
groups bring new products to market strategy to become more proactive. Under
through the provision of specialised and Bridgepoint’s ownership, the company
value-added services. The business has completed two add-on acquisitions: Sector
Healthcare and Life Sciences
serves more than 100 clients globally and StoneArch, a Minneapolis-based creative
helps to commercialise more than 300 agency with a strong reputation in the Supported by
drug compounds. Founded in 2001, the medical device and health technology Bridgepoint
business has been built up organically sector, and The Hive Health Group, a
and through small add-on acquisitions strategically led healthcare marketing Location
to become a global player. Today it and scientific communications business Knutsford
operates from 14 offices in the US, based in London and New York.
Turnover
Europe and India. Fishawack has three
£110m (year to 31 March 2020)
principal service lines: Medical Affairs, Future growth plans
Commercial Services, and Consulting. Number of employees
Bridgepoint’s business plan envisages Pre-investment: 840
Latest: 850 (Jan 2021)
What did the business need? continuing to drive organic growth,
margin enhancement, and M&A to
Fishawack would benefit from further add complementary services, broaden
professionalisation and has significant Fishawack’s customer base, and
operational improvement potential. consolidate the sector. Fishawack is
a robust platform that will be used as
What lasting value did PE/ the base for a buy and build strategy
in the attractive but fragmented
VC investment bring?
pharmaceutical commercialisation
services sector. Bridgepoint has identified
Bridgepoint has held the asset for less
more than 75 potential targets, from
than 12 months. During this short period,
smaller in-fill acquisitions to potentially
Bridgepoint has already created a clean
and simplified organisational structure and transformational opportunities, which “In partnering with Bridgepoint,
successfully recruited a new Chairman. will help to rapidly build scale. we have made a step-change in
our ambition.”
Bridgepoint also kicked off a project
Oliver Dennis, CEO
to improve Management Information
through the rollout of IT systems, which
will provide more readily available
utilisation data to control costs.
Part three bvca.co.uk //// @bvcaNations & Regions:
North West England //// 21
Pharma
Liverpool ChiroChem
Liverpool ChiroChem (LCC) is a their approach to sales. Expansion also The future is, as with any business,
chemistry-based research organisation came through the opening of the Chinese about driving revenue but also
that supports the discovery and facility, allowing the Liverpool team to working with clients to develop new
development of drug intermediates Sector
focus on research and development. compounds and looking at more
Chemistry/ Healthcare and Life Sciences
in the chiral molecule space that are strategic partnerships to continue to
used to make high-quality drugs. support the world’s drug creation. Supported by
Deepbridge Capital, Praetura Ventures
Founded in 2014 by a former Liverpool and NPIF - Maven Equity Finance
PhD student Paul Colbon, they now
“Venture backing allows LCC Location
supply companies across the globe
with a unique range of products,
to commit to a fully funded Liverpool
used in the creation of drugs. business plan to scale up its
Turnover
global operations and provide Pre-investment: 150k
LCC has two sites, one in Liverpool, the R&D community with the Latest: 800k
where the world-leading chemistry chiral components needed to
team engineer new compounds, and a Number of employees
discover and develop drugs.” Pre-investment: 10
state-of-the-art manufacturing facility
Latest: 70 (including 50 in China)
in Taizhou, China, where the team can
Paul Colbon, CEO
manufacture and scale production, both
on new products and current projects.
Venture backing
Future plans
When LCC looked for venture backing, “Modern-day drug discovery
it needed a partner to provide more than The partnership with Praetura is now techniques are now capable of
money in terms of support. It was clear paying off. The strategy change means screening billions of potential
that LCC’s technology and approach larger orders can be fulfilled and LCC’s drug molecules within a matter of
was unique, but its business model and services can be marketed more widely. Last weeks. LCC provides the building
commercial strategy required finesse. year was their most successful in terms of blocks through its unique libraries
revenue, but also in signing up some of the to allow this to happen.”
Praetura Ventures initially invested in world’s biggest and best pharmaceutical
2017 and set about growing the team’s companies. Their new product library Paul Colbon, CEO
capability through senior hires. From then, is also growing with more than 100
focus was on LCC’s strategy, which had new compounds added per month.
pivoted several times, and fine-tuning
Part three bvca.co.uk //// @bvcaNations & Regions:
North West England //// 22
Consumer products
Back2Work
Last year brought with it a set of delivered training to over 7,500 job
unparalleled challenges, for the seekers with around 63% returning to
economy, for business, and, not employment, including the placement “Since launching the business
least, for the country’s workforce. of around 600 people into non-medical in 2011 Back2Work has always Sector
Education & Training
NHS roles to support their capacity. strived to deliver services
And as the grip of the pandemic that create a lasting impact, Supported by
grew tighter, how we work This piqued the interest of private equity Palatine Private Equity
on the wellbeing, living
changed almost overnight. firm Palatine, who used their dedicated
Impact Fund, which supports businesses standards and economic and Location
Some found themselves working from making a positive impact on society, to environmental sustainability of Manchester
home. Others found their work paused, invest in Back2Work in October 2020. the communities that we serve.”
Turnover
followed by transition onto the furlough
£11.5m
scheme. Regrettably, some have found Their immediate guidance and investment Luke Muscat, Co-Founder and Managing Director
themselves without work at all. in management structure, IT systems Number of employees
and growth strategy has strengthened 140
The vaccine is, of course, cause for Back2Work internally and, in turn, improved
celebration but it is just one of many the resources and delivery for learners.
monumental efforts to return us to
the steady footing from which our For example, Back2Work has been able
country can build back better. to rapidly respond to the shift towards a
digital economy and the need for related
Back2Work is a prime example of a skills. The company now offers training on a
company that has risen to the challenge variety of digital programmes such as digital
of helping at a time of need. Having marketer and digital support technician,
provided coaching and training for over alongside existing courses in health and
a decade, the team identified a genuine social care, construction and logistics.
responsibility to provide support in the
current climate and help the increasing And as 2021 continues, further expansion
number of people looking to re-skill is on their mind. The demand for
and find alternative employment. In training spans the nation and, closely
just a fortnight, the business evolved aligned in their ESG ethos, Back2Work Luke Muscat, Co-Founder
from training 800 people a month in and Palatine stand ready to deliver. and Managing Director
classrooms to complete online delivery.
And this has had an incredible impact.
Since March 2020 Back2Work has
Part three bvca.co.uk //// @bvcaNations & Regions:
North West England //// 23
Consumer products
Merlin Entertainments
Merlin Entertainments is the second Collaboration & Investment town in the North West into the global
largest global operator, after Disney, of in the North West market for quality family entertainment.
location-based visitor attractions and theme
parks, bringing enjoyment to 67 million Sector
In 2010, Merlin worked in partnership Entertainment/Attractions
visitors across their 129 sites every year. with the local council to look at ways in
Their attractions can be found everywhere:
“Blackpool has a rich history of
which they could strengthen Blackpool’s Supported by
in Beijing, Sydney, London, Tokyo, being a fun and exciting family
overall leisure and tourism offering. Blackstone Group
Dubai and Blackpool, to name but a As part of the investment in the town,
holiday destination, so it was
few. Comprised of household names Merlin took on the refurbishment and an incredibly attractive area of Location
like Madame Tussauds, LEGOLAND Global, including Blackpool
running of the famous Blackpool Tower. the country for us to invest.”
and SEA LIFE, alongside a roster of This investment included opening a new Turnover
theme parks including Alton Towers and Blackpool Dungeon attraction (sitting Nick Varney, CEO Pre-investment: £44.9m /
Thorpe Park, Merlin Entertainments’ below the tower), alongside rebranding Post-investment: £1,249m (2014)
footprint is truly expansive. the world-class Tower Circus show and
Number of employees
managing the world-renowned Tower
Pre-investment: 2,790 /
Global reach Ballroom. Merlin redeveloped an existing
Post-investment: 26,000 (2014)
wax attraction and relaunched it as
In 2005, private equity firm Blackstone Madame Tussauds Blackpool, the only
saw an opportunity to bring Merlin’s UK site outside of London. They also
attractions to people around the world. relaunched their existing SEA LIFE Centre
“In one of the best examples of
Blackstone and the strong management and worked with Blackpool Pleasure Beach
team at Merlin created a partnership with
public/private sector cooperation
to produce a resort ‘big ticket’ offer.
KIRKBI, the family founders and owners of in the UK, we were able to
the iconic LEGO brand, to bring together Finally, the Council and Merlin initiated refurb, open and run four
Merlin Entertainments and LEGOLAND. the most successful and ongoing resort attractions in the town and make
marketing campaign in the UK, led by it part of our global portfolio.
At the time, Merlin was effectively TV advertising aimed at families. With Blackstone’s continued
a UK-only business. Its core values support we hope to continue that
and family orientation was a good The investment in Blackpool created investment in both Blackpool and
fit for the LEGO brand. Blackstone around 100 jobs, and Merlin invested the North West.”
brought the vision, capital, and further in the region with a £6m investment
expertise to support the management in 2013 when a SEA LIFE was opened in Nick Varney, CEO
in building a much larger company. Manchester. Merlin’s Blackpool attractions
received regular seasonal footfall of
~1.5 million and helped to elevate a
Part three bvca.co.uk //// @bvcaNations & Regions:
North West England //// 24
Consumer products
WEALTH at work
Liverpool-based WEALTH at work companies to quickly achieve scale.
(WAW) offers financial education, Equistone’s investment also allowed the
regulated advice and wealth management firm to bolster its technology offering
services for the workplace, delivered and increase recruitment. In doing so, Sector
Financial Services
nationally by their specialists who have WAW was able to secure contracts with
educated over 80,000 employees. some of the country’s largest employers Supported by
and best-known brands, quickly building Equistone
The company, founded in 2004, has their reputation as a quality supplier.
a comprehensive offering, including Location
interactive financial wellbeing websites, During Equistone’s tenure, the Liverpool
workplace seminars and a dedicated business has grown from 125 to 300
Number of employees
wealth management service. employees and £500million assets
Pre-investment: 120
under management to £1.75billion, as Latest: 300
What did WAW need? well as becoming very profitable.
Set up to advise retiring workers wanting Future growth
a more active role in managing their
pensions, WAW appeared perfectly Significant and constant investment
positioned to enable and cater to in technology, alongside people, has
the “pensions freedoms” policy transformed WAW into a FinTech
“People often say that private
announced in the 2014 budget. business, able to efficiently provide a
high-quality service at increasing scale.
equity is both impatient and
Despite strong growth, the business short term in its views when
had been loss-making and only turned Now, WAW is launching a new investing capital – that is
its first monthly profit in February technology-based online guide, definitely not the case in our
2015. While WAW’s most pressing developed over the past two years and experience with Equistone, who
need was investment, it also needed designed to provide an even greater have been exactly the opposite.
a renewed strategic direction to degree of support for employees in the They have been supportive and
identify areas of opportunity. “accumulation” phase of retirement. patient throughout the course of
our partnership.”
Private equity investment Ongoing investment in technology is
allowing the company to further develop David Cassidy, CEO and Founder
Upon investment, private equity and build its offering. As a result of
firm Equistone immediately assisted the above, the business is expected
WAW in acquiring Affinity group of to continue its strong growth.
Part three bvca.co.uk //// @bvcaNations & Regions:
North West England //// 25
Consumer products
Vital Energi
The UK is committed to Net Zero fantastic potential in Vital Energi and
by 2050; to stopping greenhouse the opportunity to advance net zero
gas emissions to protect our planet objectives through scaling the firm.
from a climate emergency. Sector
Green energy
SEP’s investment has allowed the
One key player in achieving this goal is company to increase headcount to 400, Supported by
the energy sector and those involved in expand into Scotland with the opening Scottish Equity Partners (SEP)
ensuring our lights switch on, our kettles of a new office and, in turn, give the
boil and our houses stay warm in winter. business the capability to deliver more Location
green energy solutions across the country. Blackburn, London, Glasgow
And as the UK phases out energy This includes the athletes’ village at the
Turnover
sources like coal, the spotlight is firmly 2014 Commonwealth Games in Glasgow,
Pre-investment: £30m
on sustainability – ensuring electricity is York’s teaching hospital and Salford’s Latest: £150m
generated through non-harmful methods. Royal NHS Trust to name but a few.
Number of employees
This is the objective of Vital Energi, Future growth Pre-investment: 146
headquartered in Blackburn, which Latest: 493
provides clean energy generation, As the UK continues its journey towards
distribution and management solutions Net Zero, Vital Energi, with the support of
including at Heathrow’s Terminal 5, SEP, remains committed to playing its part.
Edinburgh University, the Natural “SEP has worked closely with
History museum and to more than This includes the opening of a new training
our leadership team to support
83,000 homes across the UK. centre at Vital’s Blackburn HQ in late 2020, business growth. Their clean
which will provide attendees with the energy sector knowledge,
Growth equity backing necessary tools to support the Government’s industry network and ambition
heat network expansion plans. to grow long term value for
In 2012, Scottish Equity Partners acquired stakeholders has helped
a significant minority investment in Vital This will, in turn, further the company’s shape our strategy and ensure
Energi from SSE plc, alongside holdings existing relationship with The City we retain our market leading
in a further eight innovative businesses of Liverpool College with additional position.”
in the clean/renewable energy space. apprenticeship recruitment, presentations
and new product training as well supporting Ian Whitelock, CEO
With a strong track record of supporting courses at other universities and colleges
growth and value creation across with practical and theoretical education.
its portfolio companies, SEP saw
Part three bvca.co.uk //// @bvcaNations & Regions:
North West England //// 26
B2B
The Belfield Group
The increased demand in home Production and delivery soon ramped up
improvements over the last 12 months to 24hrs a day, 7 days a week across both
has not been without its challenges for sites, turning what is typically the quietest
The Belfield Group, the UK’s largest period of the year into the busiest – no Sector
Furnishings
white label manufacturer of home mean feat considering the circumstances.
furnishings, particularly for their mattress Supported by
division, USleep, based out of Ashton- In fact, the successes of the NorthEdge Capital
under-Lyne and Castle Donnington. business over the last 12
Location
months have led USleep to Ashton-under-Lyne and Ilkeston
The division had already seen fantastic
growth in the years preceding the invest in another production
Turnover
pandemic but, during lockdown, online line in Ashton, a significant
£188.6m
demand for their mattresses skyrocketed. capital commitment, and to
Of course, letting customers down was look at international expansion, Number of employees
not an option, but as an employer of 2,040
too, with new bases in Europe
over 1,600 people, meeting demand in a
COVID-secure manner was paramount. becoming a very real possibility.
With guidance from NorthEdge, the
private equity firm that backed Belfield
in 2016, they were able to successfully
navigate the new landscape.
“NorthEdge have been a real
Their large investment in the second support for Belfield, but no more
brownfield Ashton site in 2018 meant so than during lockdown. They
USleep already had the capacity, the were absolutely key in helping
equipment and the and staff numbers to us keep our USleep staff safe
make more mattresses, but NorthEdge and it was their backing and
also supported the team to ensure the
investment that meant our two
workforce was safe during the pandemic,
sites could handle the load.”
by regularly sharing key information and
best practice across the portfolio. Gary Lasham, Group CEO
Sources: BVCA Report on Investment Activity, The Belfield Group 2019
annual accounts
Part three bvca.co.uk //// @bvcaNations & Regions:
North West England //// 27
B2B
Bright Blue Foods
Mince pies mean Christmas. They Endless stabilised the business,
represent festive cheer, good tidings, bringing the finances back to an even
and cosy winter evenings. keel and saving close to 1000 jobs.
Then, some process simplification, Sector
Own label cakes and desserts
But when you take a bite out of your luxury, changes to management and
deep-filled, crumbly-pastried treat, do you improvements on the factory floor got Supported by
stop to think about where it was made? things running smoothly again. Endless LLP
Perhaps not. But chances are it From here, BBF moved from strength to Location
was lovingly crafted by Bright Blue strength. In 2018 they bought the cake Blackburn, Hull, Poland
Foods, the UK’s leading premium and dessert division of Greencore PLC
Turnover
mince pie manufacturer supplying and doubled the size of the business,
£160m+
over 115 million mince pies to the vast bringing many new employees on board
majority of Britain’s supermarkets. as well as lots of new products. The Number of employees
business has grown from revenue of 2000+
In fact, they make so much more and with £58million in 2015 to £160million in 2020.
broad production capabilities including
celebration cakes, crumbles, and pies, Now, not even a pandemic can get in BBF’s
it’s very likely you’ll have sampled a sweet way with the business continuing to grow
treat of theirs somewhere along the way. profitability throughout 2020. They kept
their employees safe and, in turn, they
However, things were not always so kept the nation’s sweet tooth satisfied.
bright for Bright Blue Foods and after a
challenging Christmas period in 2014, And things show no signs of slowing “BBF is a great business made
the business needed overcome cash flow down in 2021. With plenty of new better by backing from Endless.
difficulties and rebuild trust with suppliers. cakes and desserts in development, Their investment in 2015 saved
you’ll soon by seeing more of their many jobs and their guidance
That’s when Endless LLP got involved, delicious creations on the shelves. from here helped us grow into
seeing a business that, despite
an industry-leader in the cake
problems, had fantastic foundations for
market.”
success. Moving quickly, they invested
in the business in less than 10 days Jonathan Lill, CEO
from first meeting Management
Sources: Bright Blue Foods 2019 annual accounts
Part three bvca.co.uk //// @bvcaNations & Regions:
North West England //// 28
B2B
British Engineering Services
Manchester – the world’s first industrial and become the leading provider
city; a behemoth of the textile industry and of essential Testing, Inspection and
former epicentre of the UK’s cotton trade. Certification (‘TIC’) services across
the UK and Republic of Ireland. Sector
Engineering
While technology has shifted
the focus, it remains an exciting But things didn’t stop there. The company Supported by
destination for investment and a has continued to expand and is now a Inflexion Private Equity Partners
city with industry at its heart. melting pot of technical expertise with
nearly 300 new employees having joined Location
Not least through The British Engineering since 2018. Despite COVID, the business Manchester
Services Group. The firm, headquartered in has grown, month on month, to deliver
Turnover
Manchester’s city centre, has one important close to 2 million site inspections per year.
£45.4m
objective – to make Britain a safer place.
2020 even saw the opening of a ‘state Number of employees
By inspecting machinery, checking of the art’ training centre, and early 2021 550
technical designs to keep you compliant bought with it a substantial re-investment
with the latest safety regulations, the from Inflexion, to ensure BES continues
business prides itself on ensuring that no on its upward trajectory, delivering for its
harm comes to those in the workplace. customers and keeping the country safe.
As one might expect from a company
with over 160 years’ worth of experience,
though, the path to success has not “Our partnership with Inflexion
always been straightforward. is really delivering for the British
Engineering Services Group.
Five years ago, and following a number of We’re able to make quick
transformations, Private Equity firm Inflexion decisions and have adopted an
stepped in to bring the business together. innovative and industry leading
approach to servicing our
Starting with a name change, the British
customers.”
Engineering Services Group was born
and investment in the nuts and bolts Stewart Kay, Group CEO
quickly followed to tighten things up.
With Inflexion’s guidance the business
was then able to snap up four competitors Sources: BVCA Report on Investment Activity,
British Engineering Services 2019 annual accounts
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