Business advisors Grant Thornton has helped Recycling Lives and Estio Training find investment
Business advisors Grant Thornton has completed two major private equity deals where social impact was a key factor.
The North West corporate finance team led the strategic sale by pioneering Lancashire-based Recycling Lives of a minority stake to Three Hills Capital Partners and has also advised the founders of Estio Training, a Northern provider of IT, digital and technology apprenticeships on an investment deal with mid-market investor Palatine Private Equity’s Impact Fund.
In both cases the business owners looked at the social value credentials of their prospective partner before signing the deals worth £100m.
Peter Terry, partner and head of corporate finance in the North West, said: “Social and environmental impact is becoming increasingly important in the market place and we are already seeing some private equity firms using this as a differentiator.
“Palatine’s Impact Fund, for example, is a £100 million investment vehicle targeting growth companies that deliver a positive social and/or environmental impact.
“Three Hills Capital Partners also has a dedicated social programme, THCP for Social, through which it supports various social and economic development projects.
“For a business such as Recycling Lives, which employs ex-offenders, helps the homeless and addresses poverty in some of our poorest communities, it was essential for it to find a partner that shared its values and culture.”
Recycling Lives was founded in 2008 by brothers Steve and Danny Jackson and is led day-to-day by chief executive Will Fletcher.
The business ensures the success of its commercial operations delivers more than just environmental and economic value – it also creates tangible social value through programmes including: HMP Academies to support offender rehabilitation; Residential Programme to support people at risk of homelessness to regain their independence; and Food Redistribution supporting charitable groups to feed local communities.
Working with Three Hills Capital Partners, Recycling Lives will accelerate a five-year growth plan to expand the £70m turnover business nationwide.Recycling Lives’ founder Steve Jackson OBE DL, said of the deal: “This represents a key milestone for Recycling Lives, giving us the firepower to accelerate further our growth both commercially and socially.
“I am delighted with the partner we have found in Three Hills Capital Partners, particularly its shared ethos and support for the social values that are deep-rooted in Recycling Lives. This is a unique partnership, as private equity investors see the value of social returns as well as financial returns.”
Based in Leeds with and offices in Manchester and London, Estio Training offers 10 different apprenticeship programmes and aims to address the skills shortage in the UK IT sector by providing high quality training to both new entrants into the IT sector and existing staff developing new skills to match evolving technologies. It currently has over 750 apprentices on programmes.
It will use the investment from Palatine Private Equity to expand into more regional cities.
The deal team on Recycling Lives was Peter Terry, Matthew Bryden-Smith, Joe Pollard and Jacob Leone, with Pete and Joe also working on the Estio Traning deal alongside Gemma Hardy and Cariad Mudford.
Tax support was provided on the deals by Karen Campbell-Williams, David Hawley and Marc Balshaw.
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