Risk Capital Partners

{{short description|British private equity firm}} {{Infobox company | name = Risk Capital Partners LLP | logo = | caption = | trading_name =  | native_name =  | native_name_lang =  | romanized = | former type = | type = Private | | traded_as = | industry = Finance | genre =  | fate = | predecessor = | successor = | foundation = London, United Kingdom ({{Start date|2001|}}) | founder = | defunct =  | locations =  | area_served = Firms located in the UK only | key_people = Luke Johnson, Ben Redmond, Michael Simmonds | products = | production = | services = Private equity funds, Leveraged buyouts, Growth capital, Management buy-in funding | revenue = | operating_income = | net_income = | aum =  | assets = | equity = | owner = | num_employees = 6 | parent = | divisions = | subsid = | homepage = {{URL|http://www.riskcapitalpartners.co.uk/}} | footnotes = | intl = | bodystyle = }}

'''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== 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.<ref>{{cite web|title=Risk Capital closes first fund|url=http://www.pehub.com/33410/risk-capital-closes-first-institutional-fund/|publisher=PE Hub|accessdate=20 March 2013}}</ref> 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== * Curious Brewing - acquired in March 2021 after company put into administration.<ref>{{cite web|url=https://www.morningadvertiser.co.uk/Article/2021/02/09/Is-Curious-Brewery-being-sold|title=Chapel Down disposes of Curious Drinks to Risk Capital Partners|publisher=Morning Advertiser|access-date=24 March 2021}}</ref> * Gail's - retail bakery and cafe chain<ref name="Gailsbread">{{cite web |title=About Us |url=https://gailsbread.co.uk/about-us/ |website=Gailsbread |access-date=16 March 2022}}</ref> * [http://www.neilson.co.uk/ Neilson Active Holidays] - Activity holiday provider bought from Thomas Cook in 2013 <ref>{{cite web|title=Former Pizza Express chairman buys Neilson Active Holidays|url=https://www.theguardian.com/business/2013/nov/25/luke-johnson-pizza-express-neilson-active-holidays|publisher=theguardian.com|accessdate=15 Jan 2015}}</ref> * [https://www.superbrands.com/ Superbrands] - media and publishing * [http://www.synarbor.com/ Synarbor] - educational recruitment * [http://www.breadltd.co.uk/ The Bread Factory] - wholesale artisan bakery * [http://www.thetiledepot.co.uk/ Tile Depot] - retailer of floor and wall tiles

==Former investments== {| border=1 cellpadding=5 cellspacing=0 |- bgcolor=DDDDDD cellpadding=2 cellspacing=0 | width="18%" valign=top | '''Investment'''|| width="8%" valign=top |'''Exited'''|| width="74%" valign=top |'''Company Description'''|| width="8%" valign=top |'''Ref.''' |- | bgcolor=E8EFF9 width=“18%” valign=top | '''Greyhound Racing Association'''|| width="8%" valign=top |2019|| width="74%" valign=top |Risk Capital Partners (with Galliard Homes) bought the GRA for £50.3 million. Company dissolved in 2019.|| width="8%" valign=top |<ref>{{cite news|title=Rag trade baron who has never owned a restaurant buys The Ivy for £21m|url=https://www.independent.co.uk/news/uk/this-britain/rag-trade-baron-who-has-never-owned-a-restaurant-buys-the-ivy-for-acircpound21m-6144749.html|archive-url=https://archive.today/20130422065900/http://www.independent.co.uk/news/uk/this-britain/rag-trade-baron-who-has-never-owned-a-restaurant-buys-the-ivy-for-acircpound21m-6144749.html|url-status=dead|archive-date=April 22, 2013|work=The Independent|accessdate=20 March 2013|location=London|date=5 June 2005}}</ref> |- | bgcolor=E8EFF9 width=“18%” valign=top | '''[http://www.giraffe.net/ Giraffe]'''|| width="8%" valign=top |2013|| width="74%" valign=top |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.|| width="8%" valign=top |<ref>{{cite news|title=Tesco Buys Giraffe Restaurants|url=https://www.bbc.co.uk/news/business-21769507|publisher=BBC News|accessdate=20 March 2013|date=13 March 2013}}</ref> |- | bgcolor=E8EFF9 width=“18%” valign=top | '''[http://www.east.co.uk/ East]'''|| width="8%" valign=top |2012|| width="74%" valign=top |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.|| width="8%" valign=top |<ref>{{cite news|title=Luke Johnson goes East and buys stake in bohemian chain|url=https://www.independent.co.uk/news/business/news/luke-johnson-goes-east-and-buys-stake-in-bohemian-chain-468314.html|archive-url=https://web.archive.org/web/20121111195702/http://www.independent.co.uk/news/business/news/luke-johnson-goes-east-and-buys-stake-in-bohemian-chain-468314.html|url-status=dead|archive-date=November 11, 2012|work=The Independent|accessdate=20 March 2013|location=London|first=Susie|last=Mesure|date=2 March 2006}}</ref> |- | bgcolor=E8EFF9 width=“18%” valign=top | '''[http://www.interquestgroup.com Interquest Group]'''|| width="8%" valign=top |2010|| width="74%" valign=top |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.|| width="8%" valign=top |<ref>{{cite web|title=Double Exit for Risk Capital |date=6 January 2011|url=http://www.growthbusiness.co.uk/news-and-market-deals/fundraising-deals/1310008/double-exit-for-risk-capital.thtml|publisher=GrowthBusiness.co.uk|accessdate=20 March 2013}}</ref> |- | bgcolor=E8EFF9 width=“18%” valign=top | '''[http://www.directseafoods.co.uk/ Seafood Holdings]'''|| width="8%" valign=top |2010|| width="74%" valign=top |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.|| width="8%" valign=top |<ref>{{cite web|title=Private equity group link with seafood distributors in major new deal|url=http://english.foodqs.cn/news/news_info.asp?newsid=11966|publisher=FoodQS.com|accessdate=20 March 2013}}</ref><ref>{{cite web|title=Double Exit for Risk Capital |date=6 January 2011|url=http://www.growthbusiness.co.uk/news-and-market-deals/fundraising-deals/1310008/double-exit-for-risk-capital.thtml|publisher=GrowthBusiness.co.uk|accessdate=20 March 2013}}</ref> |- | bgcolor=E8EFF9 width=“18%” valign=top | '''[http://idhgroup.co.uk/ Integrated Dental Holdings]'''|| width="8%" valign=top |2006|| width="74%" valign=top |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.|| width="8%" valign=top |<ref>[http://www.riskcapitalpartners.co.uk/our-investments/Integrated-Dental-Holdings.html ]. RCP website</ref> |- | bgcolor=E8EFF9 width=“18%” valign=top | '''[http://www.writtle.com/writtle-holdings-ltd-acquires-loewy-group-ltd-to-create-combined-100-million-marketing-services-group/ Loewy Group]'''|| width="8%" valign=top |2006|| width="74%" valign=top |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%.|| width="8%" valign=top |<ref>{{cite web|title=Risk Capital Partners exits design and marketing company Loewy|url=https://www.unquote.com/unquote/news/1574762/uk-risk-capital-partners-exits-design-marketing-company-loewy|publisher=Unquote.com|accessdate=20 March 2013}}</ref> |- | bgcolor=E8EFF9 width=“18%” valign=top | '''Mayfair Bingo'''|| width="8%" valign=top |2006|| width="74%" valign=top |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%.|| width="8%" valign=top |<ref>{{cite news|title=City Sandwich|url=https://www.telegraph.co.uk/finance/migrationtemp/2935906/City-sandwich.html|publisher=Daily Telegraph|accessdate=20 March 2013|quote=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.|location=London|date=4 April 2006}}</ref> |- | bgcolor=E8EFF9 width=“18%” valign=top | '''Signature Restaurants'''|| width="8%" valign=top |2005|| width="74%" valign=top |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.|| width="8%" valign=top |<ref>{{cite news|title=Rag trade baron who has never owned a restaurant buys The Ivy for £21m|url=https://www.independent.co.uk/news/uk/this-britain/rag-trade-baron-who-has-never-owned-a-restaurant-buys-the-ivy-for-acircpound21m-6144749.html|archive-url=https://archive.today/20130422065900/http://www.independent.co.uk/news/uk/this-britain/rag-trade-baron-who-has-never-owned-a-restaurant-buys-the-ivy-for-acircpound21m-6144749.html|url-status=dead|archive-date=April 22, 2013|work=The Independent|accessdate=20 March 2013|location=London|date=5 June 2005}}</ref> |}

==Politics== In November 2020 the group funded a media consultant for the COVID Recovery Group of anti-lockdown MPs.<ref>{{cite web | url=https://publications.parliament.uk/pa/cm/cmregmem/210104/baker_steve.htm | title=The Register of Members' Financial Interests As at 4 January 2021 | accessdate=11 January 2021 | date=5 January 2021| publisher=UK Parliament}}</ref>

== Criticism == In 2005 Risk Capital Partners acquired the Greyhound Racing Association<ref>{{cite news |url=https://link.gale.com/apps/doc/IF0502897011/GDCS?u=oxfshlib&sid=GDCS&xid=f8ce5605|last=Bawden Walsh |first= |title='Channel 4 chairman sets pace in race for Wembley dog tracks' |work=The Times |date=12 February 2005 |page=56|via=Times Digital Archives|access-date = 12 January 2021}}</ref><ref>Bowers, Simon [https://www.theguardian.com/business/2005/mar/01/privateequity "C4 chairman buys greyhound tracks"], '"The Guardian", 1 March 2005, accessed 12 January 2021.</ref> It later emerged that the purchase was part-financed by property developer Galliard Homes and GRA faced a £49 million debt.<ref>{{cite news|last1=Winch|first1=Jessica|title=Expired £49m loan unleashes doubts over dog-race group|url=https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/9595297/Expired-49m-loan-unleashes-doubts-over-dog-race-group.html|accessdate=26 June 2016|work=The Telegraph|date=9 October 2012}}</ref><ref>{{cite news|last1=|first1=|title=MP Andrew Smith attacks Oxford Stadium owners for making profit before it was closed and deemed no longer viable|url=https://www.oxfordmail.co.uk/news/14264547.mp-andrew-smith-attacks-oxford-stadium-owners-making-profit-closed-deemed-no-longer-viable/|access-date=12 January 2021|work=The Oxford Mail|date=10 February 2016}}</ref> The company was later dissolved following the disposal of its assets.

== See also == * Luke Johnson (businessman)

==References== {{Reflist}}

Category:Private equity firms of the United Kingdom Category:Financial services companies established in 2001 Category:Financial services companies based in London