ECI Partners

Last updated

ECI Partners
Industry Private equity
Founded1976;48 years ago (1976)
Headquarters London, Manchester and New York
Products Private equity funds, Buyouts
Website www.ecipartners.com

ECI Partners is a growth focused private equity group based in the UK and the US, first established by the Bank of England in 1976. [1]

Contents

ECI typically invests up to £100m of equity (as part of an initial transaction) in businesses valued at up to £300m [2]

It was a founder member of both the European Venture Capital Association [3] (now "Invest Europe") and British Private Equity and Venture Capital Association in 1983 having organised its first management buyout (for Ansafone) in 1980. In the first decade of ECI's investment they were active across a range of investments including syndicated transactions; early investments included Williams Holdings – owner of Chubb and Kidde – founded by Nigel Rudd and Brian McGowan, and Shanks & McEwan.

From the start of the 1990s (ECI 4) the exclusive focus became UK mid-market buyouts investing in the likes of National Express and Bloomsbury Publishing.

The turn of the millennium saw ECI raise ECI 7 with leading growth investments including Thinkmoney and LateRooms.

In July 2018 ECI announced the first and final closing of its eleventh buyout fund, ECI 11. [4] ECI launched the fundraise mid-April 2018 with a target fund size of £650m and closed at the hard cap of £700m less than three months later. [5] ECI 11 was raised without using any placement agent support.

In September 2023 ECI announced the final close of its twelfth buyout fund, ECI 12, [6] hitting its £1 billion hard cap, beating £900 million target.

Investments

In April 2024, ECI acquired London-based global travel management company TAG, from Apiary Capital for an undisclosed amount. [7] [8]

In November 2023, ECI invested in ISMS.online, a UK data privacy and information security compliance service provider. [9] [10] In September 2023, ECI acquired Commify, a UK-based business messaging firm, from Hg Capital Trust for a sum of €300 million. [11] [12] [13]

In June 2022, ECI acquired BCN Group, a UK-based IT managed services company, from Beech Tree Private Equity. [14] [15]

Earlier investments have included CIPHR, [16] Mobysoft, [17] CSL, [18] KB Associates, [19] Peoplesafe, [20] Travel Chapter, [21] Moneypenny, [22] 4Ways, Arkessa, The Clear Group, Bionic, Content+Cloud, [23] Imagesound (a leading supplier of audio and screen media), [24] Tusker, [25] Investis Digital, [26] Auction Technology Group, [27] and Avantia, an online home insurance company that trades under the HomeProtect brand. [28]

Exits

In February 2023, ECI sold Tusker to Lloyds Banking Group, for a value of c.£300m, generating a return of 6.2x. [29]

In September 2022, ECI realised its investment in MiQ, delivering a 6.1x return in a deal valued at a reported $900m. [30] ECI originally backed the founders (Gurman Hundal and Lee Puri) in a minority investment in 2017 [31] with MiQ growing to $45m of profit in the year before ECI exited. [32]

in June 2022, ECI sold The Clear Group, an insurance broking platform, to Goldman Sachs Asset Management [33] having tripled Gross Written Premium to over £330m during the four year investment. [34]

In October 2021, ECI sold CPOMS, a provider of safeguarding software to schools, based in Skipton, England, to US firm Raptor Technologies. [35] [36]

In February 2021, ECI announced the IPO of its portfolio company Auction Technology Group on the London Stock Exchange where it became a member of the FTSE250. [37]

In November 2020, ECI exited MPM generating a return of 4.4x. [38]

In February 2020, ECI exited both Encore Tickets, sold to TodayTix [39] and Auction Technology Group, in a secondary buyout delivering 3.7x money whilst also reinvesting in the latter from its most recent fund.

ECI exited mthree in December 2019, selling to Wiley (publisher) and generating a return of over 100% IRR. [40]

In June 2018 ECI announced the sale of Great Rail Journeys, generating a 3.6x return. [41]

In June 2017 ECI sold Kelvin Hughes to Hensoldt, (formerly Airbus Defence Electronics), which generated a 3.3x return. [42]

In February 2017 ECI announced the sale of Clarke Energy to Kohler Co [43] for a reported £300m. [44]

The sale of Reed & Mackay [45] (premium corporate travel company) in August 2016 was ECI's 100th exit since 1990, and generated a multiple of 3.4x cost to investors.

In February 2016, ECI sold Citation, a provider of HR, employment law, and health & safety solutions to 16,000 SMEs, to HGCapital [46] for a reported £185m. [47] generating a 5.4x return on its investment. [48]

In June 2015 it sold Fourth Hospitality, a restaurant management software firm to Insight Venture Partners. [49]

In February 2015 ECI sold Wireless Logic, an M2M managed service provider, to CVC Capital Partners generating 6.1x money return. [50]

In October 2014 ECI sold XLN Telecom to the company's management and Blackstone's credit business GSO Capital Partners generating a 3x return on its investment. [51]

In March 2014 ECI sold CarTrawler to BC Partners for a reported €450m, [52] returning 6x money to investors. [53]

In February 2014 ECI sold M2 Digital to The Rigby Group through its technology brand SCC (Specialist Computer Centres). [54]

ECI sold healthcare IT company Ascribe to AIM-listed clinical software supplier EMIS Health Group in September 2013 generating a 2.1x return. [55]

ECI Growth Survey

The ECI Growth Survey [56] is the only survey in the UK focused exclusively on growth companies. It was launched in 2010 to give owners and directors of growth companies an opportunity to voice their opinion and influence the economic debate. A number of influential figures have been involved in the survey over the years including Mark Prisk, Karan Bilimoria, Baron Bilimoria, Howard Davies, Sir Danny Alexander, [57] Carolyn Fairbairn, [58] Sir John Timpson, [59] and most recently Philip Shaw, Chief Economist at Investec. [60]

Founding of the Firm

ECI's origins lie in the founding of "Equity Capital for Industry" in 1976 under a Bank of England initiative. The initial board of directors consisted of: Lord Plowden (chair), A. W. P. Stenham (Finance Director of Unilever), Lord Seebohm (chair of Finance for Industry which became 3i), Sir Jack Callard (former chair of ICI), Anthony Touche (chair of Touche, Remnant), Alfred Singer (Managing Director of National Giro), Leonard Hall (General Manager of Clerical Medical and General Life Assurance), Trevor Holdsworth (Deputy Chair, GKN), Ernest Bigland (vice chair of Guardian Royal Exchange), Peter Moody (joint investment manager, the Prudential), John Rodgers (deputy chair, CIBA-Geigy which merged to become Norvatis), Anthony Simon (chair of Target Trust Group) [61]

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References

  1. ↑ "Bank of England Quarterly Bulletin Volume 16 1976 page 301" (PDF). Bank of England.
  2. ↑ "Who We Are". ecipartners.com. Archived from the original on 13 June 2016.
  3. ↑ "The Times Archive | The Times & The Sunday Times". The Times . 19 November 2023. ISSN   0140-0460 . Retrieved 19 November 2023.
  4. ↑ "Fast growth is attraction as ECI raises record fund". The Sunday Times. Retrieved 9 July 2018.
  5. ↑ "ECI Partners raises £700m for its 11th growth fund | TheBusinessDesk.com". North West. 9 July 2018. Retrieved 15 December 2018.
  6. ↑ James, Chloe (26 September 2023). "ECI 12 closes at £1bn hard cap - ECI Partners". ECI Partners - UK private equity firm. Retrieved 26 September 2023.
  7. ↑ "ECI leads race to snap up £150m stars' travel agent". Sky News. Retrieved 24 April 2024.
  8. ↑ Karantzavelou, Vicky (11 April 2024). "Travel management firm, TAG, soars higher with backing from ECI Partners". TravelDailyNews International. Retrieved 24 April 2024.
  9. ↑ Mitchell, Sean. "ISMS.online partners with ECI Partners for global expansion plans". IT Brief India. Retrieved 24 April 2024.
  10. ↑ "ISMS.online Receives Investment From ECI Partners". FinSMEs. 29 November 2023. Retrieved 24 April 2024.
  11. ↑ "Commify's transformation backed by ECI Partners in a private equity deal worth €300M". Tech.eu. 6 September 2023. Retrieved 19 September 2023.
  12. ↑ "IN BRIEF: HgCapital Trust books 32% gain from sale of Commify stake". London South East. 5 September 2023. Retrieved 19 September 2023.
  13. ↑ Cumming, Alice (5 September 2023). "ECI Partners backs Commify with €300m investment for growth - Business Leader News". Business Leader. Retrieved 19 September 2023.
  14. ↑ "PE-Backed BCN Group Acquires CMI -". ChannelE2E. 3 April 2023. Retrieved 19 September 2023.
  15. ↑ Panettieri, Joe (21 June 2022). "Private Equity Acquires Microsoft Cloud MSP: ECI Buys BCN Group -". ChannelE2E. Retrieved 19 September 2023.
  16. ↑ "ECI announces investment in CIPHR". www.ecipartners.com. 18 January 2021. Retrieved 26 May 2021.
  17. ↑ "ECI announce investment in predictive analytics software business Mobysoft". www.ecipartners.com. 16 September 2020. Retrieved 26 May 2021.
  18. ↑ "ECI invests in CSL". www.ecipartners.com. 3 August 2020. Retrieved 26 May 2021.
  19. ↑ "Dublin investment consultancy KB Associates secures major investment". The Irish Times. Retrieved 7 October 2019.
  20. ↑ "ECI backs lone worker protection firm". Insider Media. Retrieved 30 May 2019.
  21. ↑ "Holiday Cottages owner Travel Chapter sold to new private equity investor". TTG. Retrieved 7 January 2019.
  22. ↑ "Moneypenny founders Ed Reeves and Rachel Clacher take investor's call". The Times. 11 November 2018. Retrieved 11 November 2018.
  23. ↑ "ECI snaps up stake in IT firm behind McLaren supercars". The Daily Telegraph. Retrieved 30 June 2016.
  24. ↑ "ECI tunes into in- store music group" . Retrieved 9 May 2016.
  25. ↑ "ECI Partners invests in Tusker". Fleet News. 19 February 2015. Retrieved 21 July 2015.
  26. ↑ "ECI backs Investis to accelerate its growth strategy". UK Business Angels Association. 8 December 2014. Retrieved 8 December 2014.
  27. ↑ "ECI to buy antiques bible maker ATG". The Telegraph. 17 May 2014. Retrieved 17 May 2014.
  28. ↑ "ECI Partners underpins £57m Avantia buy-out". The Telegraph. 10 March 2014. Retrieved 10 March 2014.
  29. ↑ "ECI announces sale of Tusker generating a return of 6.2x - ECI Partners". 22 February 2023.
  30. ↑ Shields, Ronan (13 September 2022). "MiQ mulls M&A moves with new PE-backers". Digiday. Retrieved 16 September 2022.
  31. ↑ "Media iQ Announces Significant Investment Round from ECI Partners - ExchangeWire.com". www.exchangewire.com. Retrieved 16 September 2022.
  32. ↑ Shields, Ronan (13 September 2022). "MiQ mulls M&A moves with new PE-backers". Digiday. Retrieved 16 September 2022.
  33. ↑ "Clear Group secures investment from Goldman Sachs Asset Management". www.privateequitywire.co.uk. 27 June 2022. Retrieved 5 July 2022.
  34. ↑ "Goldman Sachs buys into Clear as ECI exits". Insurance Age. 27 June 2022. Retrieved 5 October 2022.
  35. ↑ "Skipton-based school safeguarding software provider sold to American business". The Yorkshire Post. 6 October 2021. Retrieved 17 February 2024.
  36. ↑ "ECI sells CPOMS to PE-backed Raptor | Unquote". www.unquote.com. 7 October 2021. Retrieved 17 February 2024.
  37. ↑ "Auction Technology Group Completes IPO on London Stock Exchange". www.paulweiss.com. Retrieved 1 January 2023.
  38. ↑ "ECI's MPM exit delivers a 4.4x return". www.privateequitywire.co.uk. 9 November 2020. Retrieved 26 May 2021.
  39. ↑ "TodayTix acquires Encore, the leading independent theatre ticket distribution network in Europe". Great Hill Partners. 2 February 2020.
  40. ↑ "ECI sells MThree to trade after 18 months | Unquote". 7 January 2020.
  41. ↑ "Equity firm to embark on £100m travel deal". The Sunday Times. 30 June 2018.
  42. ↑ "A strong return is on the radar for one private equity firm as Hensoldt snaps up surveillance business Kelvin Hughes". CityA.M. 29 June 2017.
  43. ↑ "ECI more than doubles money on exit of Clarke Energy to Kohler". Real Deals. 2 February 2017.
  44. ↑ Dunkley, Daniel (4 December 2016). "Green energy tycoon to make £150m from sale". The Sunday Times. ISSN   0956-1382 . Retrieved 15 December 2018.
  45. ↑ "ECI and Livingbridge reap 3.4x on Reed & Mackay exit". Unquote. 4 August 2016.
  46. ↑ "ECI makes 5.4x on Citation sale to HgCapital". Real Deals. 15 February 2016.
  47. ↑ "Fast growing Citation is snapped up by Hg Capital for £185m". AlManchester Evening News. 15 February 2016.
  48. ↑ Louch, William. "ECI Nets 5.4x Return on Business Service Provider". penews.com. Retrieved 4 August 2019.
  49. ↑ "RESTAURANT SOFTWARE PROVIDER BOUGHT BY US FIRM". 24 June 2015. Retrieved 21 July 2015.
  50. ↑ Hammond, Jack (10 February 2015). "ECI scores 6.1x return through CVC's acquisition of Wireless Logic | AltAssets Private Equity News" . Retrieved 4 August 2019.
  51. ↑ "ECI reaps 3x on XLN exit". Unquote. 6 October 2014.
  52. ↑ Bow, Michael (25 March 2014). "BC Partners drives away with CarTrawler in €450m buyout". cityam.com. Retrieved 15 December 2018.
  53. ↑ "ECI reaps 6x in sale of CarTrawler to BC Partners | Unquote". unquote.com. Retrieved 31 August 2017.
  54. ↑ "Print services firm M2 Digital bought by SCC". 18 February 2014.
  55. ↑ "ECI makes 2.1x on Ascribe exit". Unquote. 13 September 2013.
  56. ↑ "Keep the single market and access to EU workers, Britain's high-growth companies plea". The Telegraph. 27 August 2016. Retrieved 27 August 2016.
  57. ↑ "Fast-growing companies opposed to leaving EU, says ECI Partners survey". yorkshirepost.co.uk. 28 September 2015. Retrieved 30 August 2017.
  58. ↑ Gill, Oliver (30 August 2016). "Gazelles chase growth despite Brexit vote" . Retrieved 30 August 2017.
  59. ↑ Begum, Shelina (29 August 2017). "Gazelles' shrugging off Brexit uncertainties". men. Retrieved 30 August 2017.
  60. ↑ "UK growth companies bucking the trend says ECI Growth Survey 2018". Angel News. 13 September 2018. Retrieved 13 September 2018.
  61. ↑ "The Times Archive | The Times & The Sunday Times". The Times . 19 November 2023. ISSN   0140-0460 . Retrieved 19 November 2023.
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