Key Capital Partners celebrates record year

Private equity house Key Capital Partners (KCP)'‹ is celebrating a'‹ '‹record-breaking year '‹after completing four deals worth a total of £28m in 2017, the latest in a string of investments it has made in growing SMEs nationwide.

Owen Trotter, managing partner of KCP

​The firm, which has offices in Leeds and London,​ is a leading investor in the smaller buy-out market​. It specialises in working with profitable​ ​medium sized businesses with ​the​potential for growth.

Typically, the firm makes investments of between £3m​ ​to £15m and advise​s​ the management teams of its portfolio​ ​businesses​ to​ help them to realise their expansion ambitions.

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KCP’s investment activities gain​ed​ momentum over the last year, and a total of £35m has been invested from its latest fund since its​ ​launch in 2015.

KCP’s 2017 investments ​include:​ York-based food intolerance testing business Yorktest Laboratories; online​ ​building supplies firm Construction Materials Online; independent​ ​performance media agency, MC&C and Sparta Global​, a provider of specialist IT​ ​Services.

In 2016, KCP invested in Northern domiciliary healthcare business Routes Healthcare.

Owen Trotter,​ ​managing partner of KCP​, said: ​​“Over the last two years, our team has been talking to dozens of businesses across the country which​ ​recognise their need for capital and expertise in order to realise their potential.

“With a strong track record of growing SMEs, together with our in depth​ ​knowledge of a diverse range of sectors, we have seen some great opportunities.​"

He said the​ process involves​ ​getting to know the business and management really well before ​it​ invest​s​​​ and making sure the deal is right​ ​for everyone involved.

​"​We believe that the companies in which we have invested in 2017 have real potential​ ​for value creation​,​”​ he added.​

“As well as injecting vital capital, we work closely with management teams to help​ ​drive business strategy, bringing about sustained growth and job creation and also generating a healthy​ ​return for our investors.​"

KCP said there are a large number of SMEs throughout the UK which, while​ ​profitable, offer further hidden value which can be released given crucial capital and the right expertise, ​which gives the firm a strong pipeline of further investment opportunities.

​"​With a total of £140m of funds currently​ ​under management, this year we will be continuing to make more significant investments in high growth​ ​businesses across the UK​,​”​ said Mr Trotter.​

Some of KCP’s successful exits include York-based Gear4Music which experienced tremendous growth​ ​following the firm’s investment in 2012. KCP sold its remaining stake in the business in 2016 achieving a five-fold return having helped the online musical instruments retailer become a £55m turnover operation.