Risk Capital Partners LLP is a London-based private equity firm, co-founded in 2001 by Ben Redmond and Luke Johnson. The firm invests in numerous sectors, including leisure, retail, media, healthcare, IT services, financial services and support services.
Risk Capital Partners mainly provides growth capital investment, taking minority or majority positions in established, profitable, mid-market UK companies and typically contributing £3-£15 million per investment.
The firm is currently investing a ten-year £75m fund on behalf of pension funds, life companies and specialist fund investors, including £25m provided by Risk Capital's own partners. The firm has participated in a range of investment situations, including development capital for organic growth, management buyouts, shareholder restructuring, company turnarounds and the acquisition/de-listing of public companies.
In 2004 Risk Capital Partners provided development capital to accelerate the expansion of the Giraffe family-restaurant chain. Giraffe was sold to supermarket chain Tesco in March 2013 for a multiple of 8x RCP's original valuation.
Risk Capital Partners backed the founder in 2001 with development capital to support the acquisition of a series of businesses in the IT recruitment sector, before selling its shares in 2010 and realising a return on investment of 2.8x.
In 2006 Risk Capital Partners funded Seafood Holdings' acquisition drive to build a national distribution capacity. During the firm’s investment, Seafood Holdings made eight acquisitions and grew revenue from £35 million to £80 million. In 2010 the business was sold to Bidvest for £45 million.
In 2004 Risk Capital Partners funded a take-private deal of the AIM-listed Integrated Dental Holdings, prior to a management buy-out in 2006. The MBO realised a IRR of over 400% and an overall return of 10x.
Marketing services group Loewy was backed by RCP in 2004 further to a series of acquisitions of PR, research, design and branding companies. These combined upon exit to achieve a cash multiple of 2.5x and an IRR of 43%.
Risk Capital Partners funded the public-to-private of Signature Restaurants, the owner of a number of London restaurants including The Ivy and Le Caprice. During this time management also created the Strada pizza restaurant brand. Signature was sold in 2005, realising a 7.7x return on equity.
^"City Sandwich". London: Daily Telegraph. 4 April 2006. Retrieved 20 March 2013. "In the leisure sector it emerged that Luke Johnson's private equity vehicle Risk Capital Partners has sold bingo company Mayfair Gaming to Hermes Private Equity for an undisclosed sum. Deloitte Corporate Finance and Linklaters advised Hermes Private Equity on the deal."