ECI Partners explained

ECI Partners
Location:London, Manchester and New York
Industry:Private equity
Products:Private equity funds, Buyouts

ECI Partners is a growth focused private equity group based in the UK and the US, first established by the Bank of England in 1976.[1]

ECI typically invests up to £200m of equity (as part of an initial transaction) in businesses valued at up to £300m[2]

It was a founder member of both the European Venture Capital Association[3] (now "Invest Europe") and British Private Equity and Venture Capital Association ("BVCA") in 1983 having organised its first management buyout (for Ansafone) in 1980. Early investments included Williams Holdings – owner of Chubb and Kidde – founded by Nigel Rudd and Brian McGowan, Shanks & McEwan, National Express and Bloomsbury Publishing.

The turn of the millennium saw ECI raise their seventh fund (ECI7 - £175m)[4] with leading growth investments including Thinkmoney andLateRooms (sold for a 9x return on investment[5]).

In September 2023, ECI announced the final close of its twelfth buyout fund, ECI 12,[6] hitting its £1 billion hard cap, beating a £900 million target.

Investments

In April 2024, ECI acquired London-based global travel management company TAG, from Apiary Capital for an undisclosed amount.[7] [8]

In November 2023, ECI invested in ISMS.online, a UK data privacy and information security compliance software and service provider.[9] [10] In September 2023, ECI acquired Commify, a business messaging platform, from Hg Capital Trust for a sum of €300 million.[11] [12] [13]

In June 2022, ECI acquired BCN Group, a UK-based cloud and IT managed services company, from Beech Tree Private Equity.[14] [15]

Earlier investments have included CIPHR,[16] Mobysoft,[17] CSL,[18] KB Associates,[19] Peoplesafe,[20] Travel Chapter,[21] Moneypenny,[22] 4Ways, Arkessa, The Clear Group, Bionic, Content+Cloud,[23] Imagesound (a leading supplier of audio and screen media),[24] Tusker,[25] Investis Digital,[26] Auction Technology Group,[27] and Avantia, an online home insurance company that trades under the HomeProtect brand.[28]

Exits

In February 2023, ECI sold Tusker to Lloyds Banking Group, for a value of c.£300m, generating a return of 6.2x.[29]

In September 2022, ECI realised its investment in MiQ, delivering a 6.1x return in a deal valued at a reported $900m.[30] ECI originally backed the founders (Gurman Hundal and Lee Puri) in a minority investment in 2017[31] with MiQ growing to $45m of profit in the year before ECI exited.[32]

in June 2022, ECI sold The Clear Group, an insurance broking platform, to Goldman Sachs Asset Management[33] having tripled Gross Written Premium to over £330m during the four year investment.[34]

In October 2021, ECI sold CPOMS, a provider of safeguarding software to schools, based in Skipton, England, to US firm Raptor Technologies.[35] [36]

In February 2021, ECI announced the IPO of its portfolio company Auction Technology Group on the London Stock Exchange where it became a member of the FTSE250.[37]

In November 2020, ECI exited MPM generating a return of 4.4x.[38]

In February 2020, ECI exited both Encore Tickets, sold to TodayTix[39] and Auction Technology Group, in a secondary buyout delivering 3.7x money whilst also reinvesting in the latter from its most recent fund.

ECI exited mthree in December 2019, selling to Wiley (publisher) and generating a return of over 100% IRR.[40]

In June 2018 ECI announced the sale of Great Rail Journeys, generating a 3.6x return.[41]

In June 2017 ECI sold Kelvin Hughes to Hensoldt, (formerly Airbus Defence Electronics), which generated a 3.3x return.[42] In February 2017 ECI announced the sale of Clarke Energy to Kohler Co[43] for a reported £300m.[44]

The sale of Reed & Mackay[45] (premium corporate travel company) in August 2016 was ECI's 100th exit since 1990, and generated a multiple of 3.4x cost to investors.

In February 2016, ECI sold Citation, a provider of HR, employment law, and health & safety solutions to 16,000 SMEs, to HGCapital[46] for a reported £185m.[47] generating a 5.4x return on its investment.[48]

In June 2015 it sold Fourth Hospitality, a restaurant management software firm to Insight Venture Partners.[49]

In February 2015 ECI sold Wireless Logic, an M2M managed service provider, to CVC Capital Partners generating 6.1x money return.[50]

In October 2014 ECI sold XLN Telecom to the company's management and Blackstone's credit business GSO Capital Partners generating a 3x return on its investment.[51]

In March 2014 ECI sold CarTrawler to BC Partners for a reported €450m,[52] returning 6x money to investors.[53]

In February 2014 ECI sold M2 Digital to The Rigby Group through its technology brand SCC (Specialist Computer Centres).[54]

ECI sold healthcare IT company Ascribe to AIM-listed clinical software supplier EMIS Health Group in September 2013 generating a 2.1x return.[55]

ECI Growth Survey

The ECI Growth Survey[56] is the only survey in the UK focused exclusively on growth companies. It was launched in 2010 to give owners and directors of growth companies an opportunity to voice their opinion and influence the economic debate. A number of influential figures have been involved in the survey over the years including Mark Prisk, Karan Bilimoria, Baron Bilimoria, Howard Davies, Sir Danny Alexander,[57] Carolyn Fairbairn,[58] Sir John Timpson,[59] and most recently Philip Shaw, Chief Economist at Investec.[60]

Founding of the Firm

ECI's origins lie in the founding of "Equity Capital for Industry" in 1976 under a Bank of England initiative. The initial board of directors consisted of: Lord Plowden (chair), A. W. P. Stenham (Finance Director of Unilever), Lord Seebohm (chair of Finance for Industry which became 3i), Sir Jack Callard (former chair of ICI), Anthony Touche (chair of Touche, Remnant), Alfred Singer (Managing Director of National Giro), Leonard Hall (General Manager of Clerical Medical and General Life Assurance), Trevor Holdsworth (Deputy Chair, GKN), Ernest Bigland (vice chair of Guardian Royal Exchange), Peter Moody (joint investment manager, the Prudential), John Rodgers (deputy chair, CIBA-Geigy which merged to become Norvatis), Anthony Simon (chair of Target Trust Group)[61]

External links

Notes and References

  1. News: Bank of England Quarterly Bulletin Volume 16 1976 page 301. Bank of England.
  2. Web site: Who We Are. ecipartners.com. live. https://web.archive.org/web/20160613024635/http://www.ecipartners.com:80/who-we-are . 13 June 2016 .
  3. News: 2023-11-19 . The Times Archive The Times & The Sunday Times . . en . 2023-11-19 . 0140-0460.
  4. Web site: 22 November 2000 . ECI Ventures raises its seventh fund . live . 20 July 2024 . Financial News.
  5. Web site: 2013-01-04 . ECI sells hotel dotcom for nine times return . 2024-07-20 . Private Equity International . en-GB.
  6. Web site: James . Chloe . 2023-09-26 . ECI 12 closes at £1bn hard cap - ECI Partners . 2023-09-26 . ECI Partners - UK private equity firm . en-GB.
  7. Web site: ECI leads race to snap up £150m stars' travel agent . 2024-04-24 . Sky News . en.
  8. Web site: Karantzavelou . Vicky . 2024-04-11 . Travel management firm, TAG, soars higher with backing from ECI Partners . 2024-04-24 . TravelDailyNews International .
  9. Web site: Mitchell . Sean . ISMS.online partners with ECI Partners for global expansion plans . 2024-04-24 . IT Brief India . en.
  10. Web site: 2023-11-29 . ISMS.online Receives Investment From ECI Partners . 2024-04-24 . FinSMEs . en-US.
  11. Web site: 2023-09-06 . Commify's transformation backed by ECI Partners in a private equity deal worth €300M . 2023-09-19 . Tech.eu . en-GB.
  12. Web site: 5 September 2023 . IN BRIEF: HgCapital Trust books 32% gain from sale of Commify stake . 19 September 2023 . London South East.
  13. Web site: Cumming . Alice . 2023-09-05 . ECI Partners backs Commify with €300m investment for growth - Business Leader News . 2023-09-19 . Business Leader.
  14. News: 2023-04-03 . PE-Backed BCN Group Acquires CMI - . 2023-09-19 . ChannelE2E . en-US.
  15. Web site: Panettieri . Joe . 2022-06-21 . Private Equity Acquires Microsoft Cloud MSP: ECI Buys BCN Group - . 2023-09-19 . ChannelE2E . en.
  16. Web site: ECI announces investment in CIPHR. 2021-05-26. www.ecipartners.com. 18 January 2021 . en.
  17. Web site: ECI announce investment in predictive analytics software business Mobysoft. 2021-05-26. www.ecipartners.com. 16 September 2020 . en.
  18. Web site: ECI invests in CSL. 2021-05-26. www.ecipartners.com. 3 August 2020 . en.
  19. News: Dublin investment consultancy KB Associates secures major investment . The Irish Times . 7 October 2019.
  20. Web site: ECI backs lone worker protection firm. Insider Media. 30 May 2019.
  21. Web site: Holiday Cottages owner Travel Chapter sold to new private equity investor. TTG. 7 January 2019.
  22. News: Moneypenny founders Ed Reeves and Rachel Clacher take investor's call. 11 November 2018. The Times. 11 November 2018.
  23. News: ECI snaps up stake in IT firm behind McLaren supercars. 30 June 2016. The Daily Telegraph.
  24. News: ECI tunes into in- store music group. 9 May 2016.
  25. News: ECI Partners invests in Tusker. 21 July 2015. Fleet News. 19 February 2015.
  26. News: ECI backs Investis to accelerate its growth strategy. 8 December 2014. UK Business Angels Association. 8 December 2014.
  27. News: ECI to buy antiques bible maker ATG.. 17 May 2014. The Telegraph. 17 May 2014.
  28. News: ECI Partners underpins £57m Avantia buy-out. 10 March 2014. The Telegraph. 10 March 2014.
  29. Web site: ECI announces sale of Tusker generating a return of 6.2x - ECI Partners . 22 February 2023 .
  30. Web site: Shields . Ronan . 2022-09-13 . MiQ mulls M&A moves with new PE-backers . 2022-09-16 . Digiday . en-US.
  31. Web site: Media iQ Announces Significant Investment Round from ECI Partners - ExchangeWire.com . 2022-09-16 . www.exchangewire.com . en-GB.
  32. Web site: Shields . Ronan . 2022-09-13 . MiQ mulls M&A moves with new PE-backers . 2022-09-16 . Digiday . en-US.
  33. Web site: 2022-06-27 . Clear Group secures investment from Goldman Sachs Asset Management . 2022-07-05 . www.privateequitywire.co.uk . en.
  34. Web site: 2022-06-27 . Goldman Sachs buys into Clear as ECI exits . 2022-10-05 . Insurance Age . en.
  35. Web site: 6 October 2021 . Skipton-based school safeguarding software provider sold to American business . 17 February 2024 . The Yorkshire Post.
  36. Web site: 2021-10-07 . ECI sells CPOMS to PE-backed Raptor Unquote . 2024-02-17 . www.unquote.com . en.
  37. Web site: Auction Technology Group Completes IPO on London Stock Exchange . 2023-01-01 . www.paulweiss.com . en.
  38. Web site: 2020-11-09. ECI's MPM exit delivers a 4.4x return. 2021-05-26. www.privateequitywire.co.uk. en.
  39. News: TodayTix acquires Encore, the leading independent theatre ticket distribution network in Europe. Great Hill Partners. 2 February 2020.
  40. Web site: ECI sells MThree to trade after 18 months | Unquote . 7 January 2020 .
  41. News: Equity firm to embark on £100m travel deal. The Sunday Times. 30 June 2018.
  42. News: A strong return is on the radar for one private equity firm as Hensoldt snaps up surveillance business Kelvin Hughes. CityA.M.. 29 June 2017.
  43. News: ECI more than doubles money on exit of Clarke Energy to Kohler. Real Deals. 2 February 2017.
  44. News: Green energy tycoon to make £150m from sale. Dunkley. Daniel. 4 December 2016. The Sunday Times. 15 December 2018. 0956-1382.
  45. News: ECI and Livingbridge reap 3.4x on Reed & Mackay exit. Unquote. 4 August 2016.
  46. News: ECI makes 5.4x on Citation sale to HgCapital. Real Deals. 15 February 2016.
  47. News: Fast growing Citation is snapped up by Hg Capital for £185m. AlManchester Evening News. 15 February 2016.
  48. Web site: ECI Nets 5.4x Return on Business Service Provider. Louch. William. penews.com. 4 August 2019.
  49. News: RESTAURANT SOFTWARE PROVIDER BOUGHT BY US FIRM. 21 July 2015. 24 June 2015.
  50. Web site: ECI scores 6.1x return through CVC's acquisition of Wireless Logic AltAssets Private Equity News. Hammond. Jack. 10 February 2015. 4 August 2019.
  51. News: ECI reaps 3x on XLN exit. Unquote. 6 October 2014.
  52. Web site: BC Partners drives away with CarTrawler in €450m buyout. Bow. Michael. 25 March 2014. cityam.com. 15 December 2018.
  53. News: ECI reaps 6x in sale of CarTrawler to BC Partners Unquote. unquote.com. 2017-08-31.
  54. News: Print services firm M2 Digital bought by SCC. 18 February 2014.
  55. News: ECI makes 2.1x on Ascribe exit. Unquote. 13 September 2013.
  56. News: Keep the single market and access to EU workers, Britain's high-growth companies plea. 27 August 2016. The Telegraph. 27 August 2016.
  57. Web site: Fast-growing companies opposed to leaving EU, says ECI Partners survey. yorkshirepost.co.uk. 28 September 2015 . 30 August 2017.
  58. News: Gazelles chase growth despite Brexit vote. Gill. Oliver. 30 August 2016. 30 August 2017.
  59. News: Gazelles' shrugging off Brexit uncertainties. Begum. Shelina. 29 August 2017. men. 30 August 2017.
  60. News: UK growth companies bucking the trend says ECI Growth Survey 2018. 13 September 2018. Angel News. 13 September 2018.
  61. News: 2023-11-19 . The Times Archive The Times & The Sunday Times . . en . 2023-11-19 . 0140-0460.

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