Business Growth Fund invests £8.7m in PTS Consulting
The independent growth capital investment company, Business Growth Fund (BGF) has invested £8.7m in PTS to help continue to expand the global footprint of the company.
Established in 1983, PTS today operates from 17 strategically located offices worldwide, from the west coast of the US to the east coast of Australia. CEO Kevin Perrett originally led an MBO of PTS in 1990 when it had just eight employees based at one London office. Since then, it has developed a presence in 10 countries, employing 400 people, and has delivered 11,000 projects for 4,500 clients. The business is on track to have generated revenue of almost £40m at the 2013 year end.
We are not after a quick win, so BGF's long-term view made sense to us. We are looking forward to working with them."Kevin Perrett / CEO PTS CONsulting
Kevin Perrett, CEO of PTS, said: “PTS is an established business of thirty years standing and we have successfully grown year on year by reinvesting from our own balance sheet. However, we recognised that additional external investment would allow us to move forward further and faster, by expanding the range of services that we can offer our clients and the geographies where we provide critical on the ground support. I am especially motivated to secure the long-term legacy of this business. PTS is owned by over 30 individual staff shareholders; we actively invest in our people and a collegiate approach is a key part of our culture. Finding the right fit with an investor was high up on our list of priorities. We looked into several different funding options before settling on BGF as our investor of choice. We are not after a quick win or an imminent exit so their long-term view and partnership approach made sense to us. We are looking forward to working with them.”
Kevin and his team believe PTS can go further and this is where BGF comes in."TIm Whittard / Investment Director BGF
At completion, Rob Pinchbeck of BGF will join the PTS Group Board. Rob has previously acted as Chairman of iGas plc, Sparrows Group and was part of the Executive team at Petrofac where he served as Group Director of Strategy.
Tim Whittard, Investment Director at BGF, commented: “PTS has done well to establish a presence in 10 countries, a strong track record with over 4,500 clients and revenues approaching £50m. It is an established business which has successfully doubled in size every three to five years. But Kevin and his team believe it can go further and this is where BGF comes in. It is a perfect example of a considered and long-term view to growth. Selecting an investor is an important personal choice. Like any good or service, an entrepreneur needs to feel confident that external financing is of the right quality and in reliable supply. Putting the right capital structure in place is critical to the long-term success of a business. As equity investors, we take a calculated risk on a business and gain from shared success with management. The relationship is one of partnership and, as we invest from our own balance sheet, we can commit for the long term.”
About Business Growth Fund:
Business Growth Fund has been established to help Britain’s growing businesses. Growth potential is the key criteria. BGF will invest between £2m and £10m per business in return for a minority equity stake and a seat on the board for a BGF director. BGF will provide long-term equity investment for those growing companies that today do not have access to this source of capital. As such BGF hopes to be a catalyst for growth among smaller UK companies. BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered. BGF is managed completely autonomously with an independent management team. www.businessgrowthfund.co.uk