Risk Capital Partners

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Risk Capital Partners LLP
Type Private
Industry Finance
Founded London, United Kingdom (2001 (2001))
Area served Firms located in the UK only
Key people Luke Johnson, Ben Redmond, Michael Simmonds
Services Private equity funds, Leveraged buyouts, Growth capital, Management buy-in funding
Employees 6
Website www.riskcapitalpartners.co.uk

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.

Investment profile[edit]

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.[1] 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.

Current investments[edit]

Former investments[edit]

Investment Exited Company Description Ref.
Giraffe 2013 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. [2]
East 2012 Risk Capital Partners invested in ladies fashion retailer East as part of a consortium which took a 50% stake in the company; Risk Capital completed the sale of its stake in 2012 for 1x cost. [3]
Interquest Group 2010 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. [4]
Seafood Holdings 2010 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. [5][6]
Integrated Dental Holdings 2006 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. [7]
Loewy Group 2006 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%. [8]
Mayfair Bingo 2006 RCP funded the 2004 management buy-out of Mayfair Bingo (trading as Riva Bingo halls). The business was sold in April 2006 to Hermes Private Equity, realising a return of 2.3x and an IRR of 59%. [9]
Signature Restaurants 2005 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. [10]

See also[edit]

References[edit]

  1. ^ "Risk Capital closes first fund". PE Hub. Retrieved 20 March 2013. 
  2. ^ "Tesco Buys Giraffe Restaurants". BBC News. 13 March 2013. Retrieved 20 March 2013. 
  3. ^ Mesure, Susie (2 March 2006). "Luke Johnson goes East and buys stake in bohemian chain". London: The Independent. Retrieved 20 March 2013. 
  4. ^ "Double Exit for Risk Capital". GrowthBusiness.co.uk. Retrieved 20 March 2013. 
  5. ^ "Private equity group link with seafood distibutors in major new deal". FoodQS.com. Retrieved 20 March 2013. 
  6. ^ "Double Exit for Risk Capital". GrowthBusiness.co.uk. Retrieved 20 March 2013. 
  7. ^ [1]. RCP website
  8. ^ "Risk Capital Partners exits design and marketing company Loewy". Unquote.com. Retrieved 20 March 2013. 
  9. ^ "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." 
  10. ^ "Rag trade baron who has never owned a restaurant buys The Ivy for £21m". London: The Independent. 5 June 2005. Retrieved 20 March 2013.