Risk Capital Partners

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 LLP
TypePrivate
IndustryFinance
FoundedLondon, United Kingdom (2001 (2001))
Area served
Firms located in the UK only
Key people
Luke Johnson, Ben Redmond, Michael Simmonds
ServicesPrivate equity funds, Leveraged buyouts, Growth capital, Management buy-in funding
Number of employees
6
Websitewww.riskcapitalpartners.co.uk

Investment profile

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

Former investments
InvestmentExitedCompany DescriptionRef.
Greyhound Racing Association2019Risk Capital Partners (with Galliard Homes) bought the GRA for £50.3 million. Company dissolved in 2019.[5]
Giraffe2013In 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.[6]
East2012Risk 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.[7]
Interquest Group2010Risk 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.[8]
Seafood Holdings2010In 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.[9][10]
Integrated Dental Holdings2006In 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.[11]
Loewy Group2006Marketing 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%.[12]
Mayfair Bingo2006RCP 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%.[13]
Signature Restaurants2005Risk 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.[14]

Politics

In November 2020 the group funded a media consultant for the COVID Recovery Group of anti-lockdown MPs.[15]

Criticism

In 2005 Risk Capital Partners acquired the Greyhound Racing Association[16][17] It later emerged that the purchase was part-financed by property developer Galliard Homes and GRA faced a £49 million debt.[18][19] The company was later dissolved following the disposal of its assets.

See also

References
  1. "Risk Capital closes first fund". PE Hub. Retrieved 20 March 2013.
  2. "Chapel Down disposes of Curious Drinks to Risk Capital Partners". Morning Advertiser. Retrieved 24 March 2021.
  3. "About Us". Gailsbread. Retrieved 16 March 2022.
  4. "Former Pizza Express chairman buys Neilson Active Holidays". theguardian.com. Retrieved 15 Jan 2015.
  5. "Rag trade baron who has never owned a restaurant buys The Ivy for £21m". The Independent. London. 5 June 2005. Archived from the original on April 22, 2013. Retrieved 20 March 2013.
  6. "Tesco Buys Giraffe Restaurants". BBC News. 13 March 2013. Retrieved 20 March 2013.
  7. Mesure, Susie (2 March 2006). "Luke Johnson goes East and buys stake in bohemian chain". The Independent. London. Archived from the original on November 11, 2012. Retrieved 20 March 2013.
  8. "Double Exit for Risk Capital". GrowthBusiness.co.uk. 6 January 2011. Retrieved 20 March 2013.
  9. "Private equity group link with seafood distributors in major new deal". FoodQS.com. Retrieved 20 March 2013.
  10. "Double Exit for Risk Capital". GrowthBusiness.co.uk. 6 January 2011. Retrieved 20 March 2013.
  11. . RCP website
  12. "Risk Capital Partners exits design and marketing company Loewy". Unquote.com. Retrieved 20 March 2013.
  13. "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.
  14. "Rag trade baron who has never owned a restaurant buys The Ivy for £21m". The Independent. London. 5 June 2005. Archived from the original on April 22, 2013. Retrieved 20 March 2013.
  15. "The Register of Members' Financial Interests As at 4 January 2021". UK Parliament. 5 January 2021. Retrieved 11 January 2021.
  16. Bawden Walsh (12 February 2005). "'Channel 4 chairman sets pace in race for Wembley dog tracks'". The Times. p. 56. Retrieved 12 January 2021 – via Times Digital Archives.
  17. Bowers, Simon "C4 chairman buys greyhound tracks", '"The Guardian", 1 March 2005, accessed 12 January 2021.
  18. Winch, Jessica (9 October 2012). "Expired £49m loan unleashes doubts over dog-race group". The Telegraph. Retrieved 26 June 2016.
  19. "MP Andrew Smith attacks Oxford Stadium owners for making profit before it was closed and deemed no longer viable". The Oxford Mail. 10 February 2016. Retrieved 12 January 2021.
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