Risk Capital Partners LLP the entrepreneurial private equity firm successfully sold two of its investments in December 2010.
Seafood Holdings was sold in a £45 million disposal to Bidvest, the South African owner of the UK food distribution business, 3663. Risk Capital Partners backed Toby Baxendale, founder of Seafood Holdings in 2006 with Risk Capital Partners taking a 24% stake in his business in a deal valuing the company at £16 million. Risk Capital Partners provided development capital funding for a buy and build programme in fresh fish distribution in the UK which involved 8 bolt on acquisitions driving revenues from £35 million to £80 million and profits more than trebling during its ownership.
Risk Capital Partners also disposed of its entire holding in AiM quoted UK staffing group Interquest Group plc. Risk Capital Partners first backed Gary Ashworth of Interquest in 2001 providing funding for a buy and build programme in the IT staffing industry. Over the life of Risk Capital Partners’ ownership the Group grew total revenues from £8m to over £95 million and the Group acquired 8 specialist IT staffing businesses. Risk Capital Partners sold all its shares in a private placing to new investors in the AiM quoted Group.
Commenting on these successful realisations, Luke Johnson, Chairman of Risk Capital Partners LLP commented, “Our profitable exits from both Seafood Holdings and Interquest Group demonstrate our continued ability to generate capital gains, even in the current financial climate. Both Toby Baxendale of Seafood Holdings and Gary Ashworth of Interquest founded their businesses from scratch; both are great examples of dynamic entrepreneurship. We continue to look for sound businesses, combined with talented entrepreneurs and management teams, to back.”