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The sale of Atec represents Kester Capital’s fourth consecutive exit over 4x and the eighth consecutive exit over 3x.

August 2024: Kester Capital, a leading UK lower mid-market private equity firm, today announced that following regulatory approval, the sale of Atec Group (“Atec”) has completed. Atec, trading through Ceta Insurance and Arkel Underwriting, is a data-driven digital manufacturer and distributor of specialist insurance products.

Atec’s portfolio includes brands specialising in niche leisure, household, and SME cover (caravans, motorhomes, beach huts, boats, and let properties), as well as non-standard wholesale insurance.

Since inception, Atec has been at the forefront of tech-enabled insurance distribution and niche product and channel development. Under Kester Capital’s ownership since 2017, Atec has undergone impressive organic growth. Driven by professionalisation, strong organic growth and operational improvement:

·         Customer policies have grown from 125k to 345k

·         Gross Written Premiums (“GWP”) from under £25m to over £75m

·         Revenue has tripled, and profit quadrupled

During its investment period Kester Capital supported Atec to:

·         Build out the management team

·         Develop its technology team and platform

·         Broaden the platform’s product and distribution footprint

·         Deepen its insurer relationships, add underwriting expertise and establish Arkel, a managing general agent

Cameron Crockett, Managing Partner at Kester Capital, said: “Atec is a fantastic business and we are delighted to have supported its transformation from a niche player to a broad based insurance distribution group, driven by technology and data. This is a perfect example of the Kester investment strategy in action – building market leaders and creating value.  “It has been a pleasure working alongside Brendan, Ian, Paul, and the wider team throughout our journey. We wish the whole team and the entire business every success for the future.”

Brendan Devine, CEO of Atec, said: “Kester Capital has been an excellent partner and investor in our business and I’d like to thank them, on behalf of the entire Atec team, for working alongside us to deliver our vision. Together we’ve delivered transformative growth. I’d also like to give my personal thanks to Kester for their support, advice, and partnership since joining the business.  “We’re excited to continue our journey and this investment from Perwyn is a resounding endorsement of the business we have successfully built and our future strategy.”

July 2024: Kester Capital (“Kester”), a leading UK private equity investor, today announced its investment in The Boundary a leading tech-enabled provider of marketing-grade digital twins, photorealistic visualisations, and marketing suite software for the global real estate industry.

The investment represents Kester’s third investment out of its latest fund, Kester Capital III, which closed at its hard cap of £200 million in March 2024.  It comes at a time of continued positive momentum for Kester, having recently won ‘PE House of the Year – Small Cap’ at the 2024 Real Deals Private Equity Awards and having reached an agreement on the sale of Atec, representing Kester Capital’s fourth consecutive exit over 4x and the eighth consecutive exit over 3x.

With offices in the UK, the USA and New Zealand, The Boundary is a rapidly growing international business with an exceptional reputation as the leading real time rendering focused VR studio in the architectural industry.  The business has a proven track record of impressive growth, leveraging proprietary software tools and a world-class team of 3D artists and software developers to consistently deliver the highest quality content for its clients, many of which are the world’s largest real estate developers.

The architectural visualisation market is expected to see strong growth in the medium-term, underpinned by several factors including growth in the volume of prime and super-prime residential developments, increasing awareness of technological advancements and increasing share of marketing spend allocated to visualisation services.  The Boundary’s partnership with Kester will allow it to accelerate its growth and consolidate its global presence.

Tom Wood, CEO of The Boundary, said: “As a business built on the foundations of an exceptional culture, finding the right partner for the next phase of growth was central to our decision making. From day one Kester stood apart amongst numerous investors in terms of their understanding of our business, our culture and the potential which lies ahead of us, and I am delighted that we have their backing for the next stage of our journey.”

Cameron Crockett, Managing Partner of Kester Capital, said: “The Boundary is an exceptional technology business operating in an attractive, growing and global market. We’re delighted to partner with Tom, Henry, Peter, Sam and the rest of the management team to help maximise the opportunity ahead of them.”

Kester Capital is also pleased to announce that its portfolio company, GXP Engaged, the leading international firm of GxP auditors, has completed its acquisition of SwissPharmAudit. The acquisition accelerates GXP Engaged’s growth and consolidates its position as the market-leading provider of GxP audit and related consulting services.

The sale of Atec represents Kester Capital’s fourth consecutive exit over 4x and the eighth consecutive exit over 3x.

June 2024: Kester Capital, a leading UK lower mid-market private equity firm, today announced that it has signed a definitive agreement to sell Atec Group (“Atec”) to Perwyn, a leading European private equity investor. Atec, trading through Ceta Insurance and Arkel Underwriting, is a data-driven digital manufacturer and distributor of specialist insurance products in the UK.

Atec’s portfolio includes brands specialising in niche leisure, household, and SME cover (caravans, motorhomes, beach huts, boats, and let properties), as well as non-standard wholesale insurance.

Since inception, Atec has been at the forefront of tech-enabled insurance distribution and niche product and channel development. Under Kester Capital’s ownership since 2017, Atec has undergone impressive organic growth. Driven by professionalisation, strong organic growth and operational improvement:

·         Customer policies have grown from 125k to 345k

·         Gross Written Premiums (“GWP”) from under £25m to over £75m

·         Revenue has tripled, and profit quadrupled

During its investment period Kester Capital supported Atec to:

·         Build out the management team

·         Develop its technology team and platform

·         Broaden the platform’s product and distribution footprint

·         Deepen its insurer relationships, add underwriting expertise and establish Arkel, a managing general agent

Cameron Crockett, Managing Partner at Kester Capital, said: “Atec is a fantastic business and we are delighted to have supported its transformation from a niche player to a broad based insurance distribution group, driven by technology and data. This is a perfect example of the Kester investment strategy in action – building market leaders and creating value.  “It has been a pleasure working alongside Brendan, Ian, Paul, and the wider team throughout our journey. We wish the whole team and the entire business every success for the future.”

Brendan Devine, CEO of Atec, said: “Kester Capital has been an excellent partner and investor in our business and I’d like to thank them, on behalf of the entire Atec team, for working alongside us to deliver our vision. Together we’ve delivered transformative growth. I’d also like to give my personal thanks to Kester for their support, advice, and partnership since joining the business.  “We’re excited to continue our journey and this investment from Perwyn is a resounding endorsement of the business we have successfully built and our future strategy.”

Perwyn’s investment will enable Atec to further strengthen and grow its position as a leading UK specialist insurance platform.

The completion of the transaction is subject to FCA regulatory approval.

June 2024: Kester Capital (“Kester”), a leading UK private equity investor, is pleased to announce that GXP Engaged, the leading international firm of GxP auditors, has completed its acquisition of German-headquartered SwissPharmAudit. The acquisition complements GXP Engaged’s already established presence in Western Europe and builds on its acquisition of US-based Polaris Compliance Consultants in April 2024. The group now works with 300 auditors across 65+ countries globally.

May 2024: Kester Capital (“Kester”), a leading UK private equity investor, is pleased to announce that MAP Patient Access (“MAP”), a provider of market access consulting services to the biopharma sector, has completed the acquisition of AxTalis, a Benelux-based provider of market access, medical affairs and regulatory consulting services. AxTalis counts 7 of the top 10 global pharma companies among its customers, and its deep market expertise and exceptional reputation will complement MAP’s existing presence in the UK and Ireland. The acquisition represents the first move by Kester Capital-backed MAP to build a pan-European business.

April 2024: Kester Capital, a leading UK lower mid-market private equity firm, is pleased to announce being named ‘PE House of the Year – Small-Cap’ at the Real Deals Private Equity Awards 2024. 

Despite market headwinds, Kester recently announced the successful final close of its latest fund, Kester Capital III (“the Fund”). The Fund, which was oversubscribed, exceeded its target of £150 million and closed at its hard cap of £200 million, more than double the size of its predecessor fund. In line with Kester Capital II, the strategy for the Fund remains focused on investing in primary buyouts in the healthcare and technology sectors.  Kester Capital has committed 10% of the Fund’s carry to the Kester Foundation, which was established in 2022, to support a range of charities and not-for-profit organisations.

Fund III builds on the successes of Kester Capital I and Kester Capital II, which have delivered three consecutive exits with a return over 4x and seven consecutive exits with a return over 3x. Kester Capital’s most recent exit from Jollyes, announced earlier this month, delivered a return of 4.2x.

Commenting on this prestigious award, Cameron Crockett, Managing Partner at Kester Capital, said: “We are delighted to have won this award. This recognition is testament to the progress we’ve made over the last 10 years. We would like to extend a huge thanks to our management teams, advisers, investors and team members.”

April 2024: Kester Capital (“Kester”), a leading UK private equity investor, is pleased to announce that GXP Engaged, the leading international firm of GxP auditors, has completed its acquisition of North Carolina-based Polaris Compliance Consultants (“Polaris”), accelerating GXP Engaged’s international growth strategy into the USA. The group now works with 250 auditors across 65+ countries globally.

March 2024: Kester Capital, a leading UK lower mid-market private equity firm, is pleased to announce the successful final close of its latest fund, Kester Capital III (“the Fund”). The Fund, which was oversubscribed, exceeded its target of £150 million and closed at its hard cap of £200 million, more than double the size of its predecessor fund. In line with Kester Capital II, the strategy for the Fund remains focused on investing in primary buyouts in the healthcare and technology sectors.

The Fund builds on the successes of Kester Capital I and Kester Capital II, which have delivered three consecutive exits with a return over 4x and seven consecutive exits with a return over 3x. Kester Capital’s most recent exit from Jollyes, announced earlier this month, delivered a return of 4.2x.

Kester Capital attracted a number of new, blue-chip institutional investors from the US, Europe and the UK, alongside support from existing investors, underscoring the strength of Kester’s proposition.

Kester Capital has committed 10% of the Fund’s carry to the Kester Foundation, which was established in 2022, to support a range of charities and not-for-profit organisations.

Commenting on the fundraising success, Adam Maidment, Managing Partner at Kester Capital, said: “This is the next step for Kester – hitting our hard cap and attracting so many new, high-quality LPs alongside our long-standing supporters, all in a challenging market. That’s testament to the hard work our management and investment teams are putting in every day and proof of our strategy. We are very proud of the top decile returns we have been delivering for our investors.

“This fund is particularly special for us too as we launch the Kester Foundation alongside it. With 10% of carry going into the Foundation, we hope to make a meaningful impact and share our success with important and deserving charitable causes.”

Partner promotion and new hire

Kester Capital is also pleased to announce that Abhishek Majumdar has been promoted to Parter. 

Abhishek joined Kester Capital in 2023, having previously spent seven years at Inflexion. Earlier this year, Sophie Corrodi, previously at Inflexion and OC&C, joined the firm as an Associate.

Cameron Crockett, Managing Partner at Kester Capital, commented: “Abhishek has made an immediate impact since joining the business and we are thrilled to promote him to Partner. He brings a wealth of experience in the technology sector and will be an invaluable member as we look to continue our success with this latest fund. We are also excited to welcome Sophie to the business as we expand our team.”

February 2024: Kester Capital, a leading UK lower mid-market private equity firm, today announced that it has signed an agreement to sell its portfolio business, Jollyes Retail Group Limited (“Jollyes”), to TDR Capital. Jollyes is the second largest and best value pet retailer in the UK.

Under Kester Capital’s ownership since 2018, Jollyes has undergone a significant transformation and is now one of the fastest growing physical retailers in the UK:

• Jollyes’ network of stores has expanded from 64 to 100
• Jollyes has more than doubled its employee base to over 1,200
• Jollyes has consistently delivered market-leading, double digit like-for-like growth
• Revenue and profit have more than doubled since Kester Capital invested

Jollyes’ strong financial performance has been underpinned by its differentiated proposition – a focus on value and customer service – and the positive long-term fundamentals of the UK pet retail market in which it operates.

The sale of Jollyes delivers a return on Kester Capital’s investment of 4.3x and an IRR of 30%. This represents Kester Capital’s third consecutive exit over 4x and the seventh consecutive exit over 3x.

Adam Maidment, Managing Partner at Kester Capital, said: “I’m incredibly proud of what we have achieved with Jollyes. We have doubled the workforce, doubled the revenue and more than doubled the profitability, building one of the largest specialty pet retailers in the country. It’s a great success story and exactly the kind of value creation story Kester is about. 

“It has been a pleasure to work alongside Joe, Richard and the wider team over the last six years. We wish the management team and the business every success for the future.” 

Joe Wykes, CEO of Jollyes, said: “Kester Capital has been a strong partner for Jollyes over the last six years, and an invaluable adviser to me since I joined. 

“We have valued their expertise and guidance as we accelerated our growth plans, and are grateful for their support and the foundation they've built for the next chapter in our story.”

During its investment period, Kester Capital recruited a high calibre management team, led by CEO Joe Wykes and Chairman Richard Cotter, who have overseen a broad programme of repositioning and operational improvement. This is reflected in: a loyalty programme with market-leading participation rates; a material expansion in Jollyes’ own brand offering; the roll-out of veterinary and grooming services across the store estate; and maintaining a Trustpilot score of 4.8, well ahead of peers. The business also completed a number of bolt-on acquisitions to supplement organic growth and transitioned to central distribution under Kester Capital’s ownership.

TDR Capital’s investment, alongside reinvestment by management, will enable Jollyes to continue its success as an independent business.

Kester Capital was advised by Houlihan Lokey (M&A), PwC (financial and tax) and Osborne Clarke (legal). TDR Capital was advised by HSBC and Barclays (M&A), PwC (financial and tax) and CMS (legal). Management was advised by Jamieson (financial), Blick Rothenberg (tax) and Osborne Clarke (legal).

October 2023:  Kester Capital, a leading lower mid-market buyout firm, has announced that Abhishek Majumdar has joined the business as Principal and Cam Steele has joined as Vice President.  Abhishek previously spent 7 years at Inflexion where he worked on a number of transactions in the technology and services sectors.  Abhishek is a graduate of Oxford University, where he studied Physics.  Before joining Kester, Cam spent 5 years at Skill Capital, leading the firm’s B2B software & services franchise and partnering with entrepreneurs on early stage, growth capital and leveraged buyout investments.  Cam graduated from the University of Bristol with a degree in Biological Sciences.

Kester is also pleased to announce a raft of promotions.  Thomas Holroyd has been promoted to Partner; Rob Henderson and Ben Woolley have been promoted to Principal; and David Fernie has been promoted to Vice President. 

The evolution of the Kester team comes on the back of a strong year for the firm in which it has completed two new platform investments from its third fund as well as recently exiting Avania Clinical, generating a return of 8.4x, and Vixio, for a 4.8x return. 

Kester has also announced the formation of a new charitable foundation, The Kester Foundation, which will receive 10% of the carry generated by Fund III and future funds and which it will use to support a range of charities and not-for-profit organisations.

Cameron Crockett, Managing Partner of Kester Capital, commented: “We are delighted to welcome Abhishek and Cam to our business and announce these important promotions.  We are excited about assembling such an experienced and talented team at Kester as we look to build on our strong track record.  We are also proud to have established a charitable foundation so that the entire Kester team can share its success with important and deserving causes.”

September 2023: Kester Capital (“Kester”), the UK lower mid-market private equity specialist, today announced its investment in GXP Engaged, a leading provider of Good Clinical/Pharmacovigilance Practice (GCP/GVP) audit and related consulting services to the pharmaceutical and biotech sectors.

The investment represents Kester’s sixth investment in the Life Sciences sector, and the second investment out of its latest fund, Kester Capital III.  This transaction cements Kester’s reputation as one of the leading life sciences investors in the UK private equity market.  Earlier this year, Kester acquired MAP Patient Access, a provider of market access consulting services and, last month, announced the acquisition of Biopharmics by its portfolio company, Optibrium, one of the leading software providers to the drug discovery market.  Kester also recently exited Avania, the global medical technology CRO, generating a 8.4x return. 

With offices in the UK, Germany and Austria, to support its global operations, GXP Engaged is a fast-growing business with an exceptional reputation for providing high-quality, third-party audit services to the biopharma market.  It also provides related consulting services.  The business has a proven track record of impressive growth and counts several of the largest global pharma companies as long-standing clients. 

GXP Engaged is well-positioned to benefit from strong market tailwinds, including an increasingly onerous and rigorously enforced regulatory environment, the continued growth of the global drug development pipeline, and the increasing propensity of biopharma to outsource non-core functions. This partnership with Kester will allow GXP Engaged to build its global presence rapidly, both organically as well as through strategic acquisitions. 

Following the acquisition, Ian Montague, an experienced life science auditing senior executive, whom Kester has known for several years, will transition from his current role as Chief Commercial Officer to lead the business as CEO.  In addition, André van de Sande, who has held several executive, NED and Chair roles in the life sciences sector, will join as Chair.

Ian Montague, incoming CEO, said: “I am delighted to be working alongside the team at Kester Capital.  GXP Engaged is well-positioned to accelerate its growth and Kester’s long and successful track record in the Life Sciences sector makes it the perfect partner as we move into this next exciting phase.”

Barbara Heumann, outgoing Managing Director, said: “I am incredibly proud to have grown GXP Engaged into the business it is today and am delighted to be handing over to Ian, André and the Kester team.  I am confident their collective experience and expertise, supported by the incumbent team, will help GXP Engaged to achieve great success.

Adam Maidment, Managing Partner of Kester Capital, said: “This is a sector that Kester knows well and GXP Engaged is a well-established provider of audit and consulting services to some of the largest pharma companies in the world.  It has an excellent reputation, and we are delighted to have the opportunity to partner with Ian, André and the existing team to accelerate growth of the business, both organically and through acquisition.”

August 2023: Optibrium, a leading drug discovery software provider to the pharmaceutical and biotech industries, today announced the acquisition of US based BioPharmics. The acquisition expands Optibrium’s existing capabilities in 3D drug design and molecular structure modelling. BioPharmics was acquired for an undisclosed sum.

Over the last 25 years, BioPharmics has developed a series of industry-leading algorithms and software for 3D ligand and structure-based computational drug design. Its products have all been rigorously researched and their results demonstrated in numerous peer-reviewed papers, many published in partnership with key pharmaceutical industry partners.

The strategic acquisition brings new, state of the art software capability into Optibrium's comprehensive StarDrop™ platform, complementing its existing range of artificial intelligence, de novo design, and in silico modelling software. The deal follows a long-standing collaboration between the two companies, including a partnership on the development of the Surflex eSim3D StarDrop module.

The agreement to purchase BioPharmics represents the latest move by Kester Capital-backed Optibrium to accelerate the group’s growth plans. Optibrium has delivered c.30% ARR CAGR over the last three years and is continuing to innovate in the latest computer-aided drug discovery technologies and expand its global presence.

The market for computer-aided drug discovery (CADD) is a fast-growing sector, driven by the increasing capabilities and sophistication of software tools that can deliver material cost and time savings for drug developers. Market research has predicted that the global CADD market will surpass $4.8 billion by 2026.

Adam Maidment, Managing Partner of Kester Capital, said: “This acquisition further cements Optibrium’s position at the cutting edge of computer-aided drug discovery. BioPharmics is a natural fit with its reputation for scientific rigour and innovation and we are excited at the prospect of what can be achieved with the combination of the two businesses going forwards. We look forward to supporting them on the next step of the journey.” 

Dr Matthew Segall, CEO of Optibrium, said: “We are delighted to welcome Ajay and Ann to the team. Their extensive experience in computational chemistry and biology, alongside BioPharmics’ world-leading software for 3D ligand- and structure-based design, will bring Optibrium to the forefront of these essential technologies for small molecule discovery and design.” 

Dr Ajay Jain, Founder and CEO of BioPharmics, said: “We have always been impressed by Optibrium’s team, technology and scientific focus, and we firmly believe that there is no better partner to continue the powerful software developments that BioPharmics has introduced over the years. I look forward to working as part of the Optibrium team to expand their internal expertise in 3D drug design, as well as on future drug discovery innovations.”

Dr Ann Cleves, Director of Applied Science at BioPharmics, said: “We have enjoyed working with Optibrium over the years, and the high levels of mutual respect for the scientific and technological expertise from each side of the partnership has enabled this next step. I am excited to see the new products and ground-breaking science that we will deliver together.”

March 2023: Kester Capital, the UK lower mid-market private equity specialist, today announced its investment in MAP Patient Access, a leader in market access consulting services to the pharmaceutical and biotech sectors. 

The investment represents Kester’s fifth investment in the Life Sciences sector. It also comes at a time of continued positive momentum for Kester, having recently invested in DC Byte, a leading data centre market intelligence and analytics business, and exited Vixio, a high growth regulatory information and data provider, generating a 4.8x return, and Avania, the leading global medical technology CRO, generating a 8.4x return. 

Headquartered in Cambridge, MAP is dedicated to accelerating patient access to ground-breaking medicines, devices, and diagnostics. It has a proven track record of helping its customers navigate increasingly complex healthcare reimbursement pathways, with particular expertise in rare and orphan diseases and cell and gene therapies. MAP’s integrated approach blends best-in-class consulting with membership including its proprietary digital platform, MAP Online, which provides market access intelligence to its customers. 

Increasing pressure on healthcare budgets is driving higher levels of scrutiny from healthcare advisory bodies around the world and, with its deep domain expertise, MAP is well positioned to help its customers navigate these challenges. This transaction with Kester will allow MAP to invest in broadening its service offering and expand into new territories. Kester and management will also target acquisitions to accelerate the growth of the MAP platform.

Adam Maidment, Managing Partner of Kester Capital, said: “Kester has been targeting the market access and reimbursement sector for some time and we are delighted to have the opportunity to invest in MAP, one of the leading businesses in this space. We are looking forward to partnering with Dan, Christian and the existing management team to continue the growth of the business organically and through acquisition.” 

Dan Spacie, CEO, said: “This deal is a significant milestone for MAP, and we are excited to be partnering with the team at Kester, an investor with a long and successful track record in the Life Sciences sector. MAP has huge potential for growth and I am looking forward to leading the organisation as we move into this next phase.”

Christian Hill, CSO & Co-founder, said: “I am excited to be working with Dan and Kester to continue MAP’s journey and I am confident that their experience and expertise, supported by an exceptional management team, will unleash the potential from the amazing foundation of patient access success we have delivered over the past decade.”

December 2022: Kester Capital, the UK lower mid-market private equity specialist, today announced its investment in DC Byte, a leading global market intelligence and analytics provider for data centre operators, developers, investors, advisers and suppliers.

The investment represents Kester’s third investment in the Information & Data sector, and the fifth investment out of its latest fund, Kester Capital II, which closed at its hard cap in 2020. The DC Byte investment follows two recent exits: Vixio, a high growth provider of data and information services generating a 4.8x return for Kester; and, Avania, the leading global medical technology CRO for 8.4x.

DC Byte, founded by CEO Ed Galvin, is a fast-growing business that has built a highly differentiated subscription-based offering through its data centre focused market intelligence and analytics platform. This proprietary data and insight rich service provides users with a comprehensive global database, updated and validated in real time, alleviating critical customer pain points caused by the lack of reliable and transparent information. DC Byte is headquartered in London, with operations in Europe, Asia, and North America.

With demand for cloud storage driving the need for increased capacity and regulation driving geographical expansion, DC Byte is well positioned to continue to benefit from these significant market tailwinds. Kester will work alongside management to develop new markets and products aimed at capitalising on the strong organic growth being driven by underlying demand for, and investment in, digital infrastructure.

Cameron Crockett, Managing Partner at Kester Capital, said: “Ed and team have built an exceptional data business in the very attractive and rapidly scaling data centre market. Subscription Information & Data is a core sector for Kester and we look forward to helping the DC Byte team maximise the opportunity ahead of them.”

Ed Galvin, DC Byte CEO, said: “I am delighted to be working with Kester to accelerate our vision for the company as we enter a new and exciting chapter in the story of DC Byte. Kester’s experience in scaling data and information businesses makes them an excellent partner to support the future growth of the business and continue our mission to provide ever greater levels of insight into the data centre sector.”

December 2022:  Kester Capital, a leading UK lower mid-market private equity firm, today announced that it has signed an agreement to sell its portfolio business, Vixio, to Perwyn, the European private equity investor. Vixio is the world’s leading provider of global regulatory intelligence to the payments and gambling markets.  

As a high growth provider of subscription data and information services, operating in a long-term growth market, Vixio is a prime example of the type of business that Kester seeks to back. Under Kester’s ownership, the business has: materially enhanced its product offering and domain expertise; developed the technology platform to enable future growth; and, invested significantly in the recruitment of a high calibre management team. As a result, Vixio has doubled its subscription revenues over the last three years, while growing profit and cash flow at a substantially faster rate. 

Through its PaymentsCompliance and GamblingCompliance subscription products, Vixio enables regulatory and legal teams around the world to manage risk confidently and discover new market opportunities by providing in-depth information, data and analysis. Headquartered in London, with an office in Washington DC, Vixio serves over 400 customers globally, including operators, regulators, technology providers and law firms.

The sale of Vixio will deliver a return on Kester’s investment of 4.8x and an IRR of over 60%. This represents Kester’s sixth consecutive exit over 3x and comes on the back of the sale of Avania earlier this year which delivered a return of over 8x. The sale also marks Kester’s first exit from its current fund, Kester Capital II, which closed at its hard cap of £90 million in August 2020.

Perwyn’s investment, alongside reinvestment by management, will enable the Company to continue to drive innovation and expand geographic coverage, while actively pursuing M&A opportunities. 

Adam Maidment, Managing Partner at Kester Capital, said: “We would like to thank Mike Woolfrey, Vixio’s CEO, and his team for their phenomenal efforts over the last three years in building the business into the world’s leading provider of regulatory intelligence within its target sectors. It has been a pleasure to have worked with such a high quality business and we wish the management team every success for the future.”

Mike Woolfrey, CEO of Vixio, said: “We are delighted to have achieved this successful exit for the current shareholders and want to thank Kester for their support and collaboration over the last three years. We are excited about welcoming Perwyn as new majority shareholders in the business and are excited about the potential for Vixio as we start a new chapter.”

Gurinder Sunner, Partner at Perwyn, said: “We are delighted to be partnering with the Vixio team and support their ambitious growth plans. Already the market leader, we will be investing to enhance and increase the product offering and geographic coverage whilst maintaining and enhancing its leading reputation as the go to provider for regulatory intelligence in both the payments and gambling market. We look forward to working with Mike and the team.”

July 2022:  Kester Capital, the primary buyout specialist, announces that two of its portfolio companies, Rephine and Jollyes, have completed strategic acquisitions. In addition, Kester has provided follow-on funding to another portfolio company, Optibrium, to accelerate development and expansion. This investment activity comes on the back of the recent sale of Avania, which delivered in excess of 8x ROI for Kester.

Rephine, a leading provider of Good Manufacturing Practice (GMP) audits and regulatory consulting services to the pharmaceutical industry, has acquired Barcelona-based GxP audit organisation Forum Auditorias, and its manufacturing supply chain compliance consultancy TDV. The acquisition will create the clear global leader in the GMP audit library market, more than doubling the size of the library to 750 current GMP audit reports, spanning 2,500+ pharmaceutical products, and providing coverage of 100+ countries encompassing all major manufacturing locations. The consolidated organisation operates from three primary locations – the UK, Spain and China – and employs c.100 staff.

Optibrium, a leading provider of drug discovery software to the pharmaceutical and biotech industries, has also secured further investment from Kester. The investment will be used to further accelerate the development and roll-out of Optibrium's AI-enabled drug discovery technologies. The funding follows initial investment by Kester in February 2021 and reflects the success of the business which has delivered ARR growth in excess of 25% for the last 3 years.

Finally, Jollyes, a leading UK retailer of specialty pet products, has completed the acquisition of Penparc, a chain of pet retail stores across the Midlands. The acquisition of Penparc follows Jollyes' acquisition of The Pet Store and Bannerbrook Pets in 2021.

Kester also recently announced the refinancings of Atec, a leader in digital insurance distribution, and Vixio, a leader in the provision of regulatory and compliance data, information and analysis, following an extended period of strong trading at both businesses.

July 2022:  Rephine, a leading provider of Good Manufacturing Practice (GMP) audits and regulatory consulting services to the pharmaceutical industry, today announced its acquisition of Barcelona-based GxP audit organisation Forum Auditorias, and its manufacturing supply chain compliance consultancy TDV. Forum Auditorias is a leading third-party auditing organisation, with an outstanding reputation for quality.  TDV specialises in GxP consulting, with deep expertise in all aspects of manufacturing compliance, as well as IT systems validation and implementation.

This acquisition will accelerate Rephine’s international expansion plans, creating the clear global leader with an audit library of 750 current GMP audit reports, spanning 2,500+ pharmaceutical products, and providing coverage of 100+ countries encompassing all major manufacturing locations. The group operates from three primary locations – Stevenage (UK), Barcelona (Spain), and Shanghai (China) – and employs c.100 staff.

Adam Sherlock, Rephine’s CEO said: “By combining the two best European organisations in this sector, we are creating the clear global leader in terms of the scope of services we offer clients, our international reach across manufacturing supply chains and the number of high-quality reports for clients to purchase from our audit library”.

Adam Maidment, Managing Partner of Kester Capital, commented: “This acquisition will create the leading GMP audit business globally, with an outstanding reputation for quality and the largest audit report library in the industry. The regulatory tailwinds supporting the growth in Rephine’s market continue to be strong and we are very excited about the group’s growth prospects, both organically and through supporting further strategic M&A activity.”

July 2022:  Jollyes, a leading pet retailer in the UK, today announced it was buying Penparc, a chain of pet retail stores across the Midlands, for an undisclosed sum. 

Founded in 1990 by Gerald and Wendy Allen, Penparc has established a loyal customer base by providing affordable products and excellent customer service to local pet owners. 

The acquisition brings together two businesses dedicated to high quality and personal service for owners and their pets. Penparc’s employees will join the 800-strong workforce across Jollyes' nationwide estate, with customers still able find the same great ranges they’ve come to appreciate, alongside the best possible customer service.

The agreement to purchase Penparc is the latest move by Kester Capital-backed Jollyes to accelerate its growth plans and has been supported by new loan facilities from the incumbent lender, HSBC. It follows the successful acquisitions of The Pet Store and Bannerbrook Pets in 2021, in addition to four new store openings in the last four months.

Jollyes has grown its store estate by almost 20 per cent in a little over a year, making it one of the fastest growing physical retailers in the UK. It has also achieved an average Trust Pilot score of 4.8 across its estate, underlining its commitment to the highest standards of customer service.

The acquisition comes at an exciting time for the business following the recent appointment of Joe Wykes as CEO in May 2022. Jollyes expects to continue to add to its store estate through both the targeted strategic acquisition of smaller pet retailers and taking on new leases in carefully thought-through locations across Great Britain and Northern Ireland. 

Joe Wykes, Jollyes’ CEO, said: “The dedication of the Penparc team to their pet-owning customers has created a large and loyal customer base in the towns they trade. We couldn’t be prouder to bring them into the Jollyes team. Whether organically or through acquisition, we remain ambitious as we seek other opportunities to grow.”

June 2022:  Kester Capital, the primary buyout specialist, today announced that it has signed an agreement to sell a majority stake in Avania to global private equity firm, Astorg. Avania is one of the leading global clinical CROs (“Contract Research Organisation”) dedicated to medical technology. Astorg’s Mid-Cap fund, alongside Kester who intend to retain a minority stake, will actively support management’s plans to accelerate Avania’s development, organically and through M&A. 

The sale of Avania will deliver a return of over 8x and is the fifth consecutive exit for Kester to achieve a return of over 3x.   The firm’s current fund, Kester Capital II, closed above target at its hard cap of £90 million in August 2020.

As a primary buy-out from the founders, Avania exemplifies the sort of business that Kester Capital seeks to back. Having facilitated the succession of the founders through the recruitment of a new senior leadership team led by Sapna Hornyak, Avania grew through a combination of organic investment as well as a series of strategic acquisitions to cement its leading position as a global provider of outsourced clinical trial services, specifically focused on medical technology. Since the original investment by Kester in 2016, EBITDA has grown over five times to over €10m in the current year.

Today, Avania covers the full regulatory lifecycle across a broad range of therapeutic areas. Headquartered in the Netherlands, and with eight offices across North America, Europe and Asia Pacific, Avania serves 300 medical device OEMs of different sizes through an integrated service offering including clinical trial management, biostatistics, regulatory consulting, data analytics, medical writing and reimbursement. Avania has delivered exceptional organic growth thanks to its differentiated proposition in a fast-growing market driven by innovation, increasing regulation and penetration of outsourcing. 

Adam Maidment, Managing Partner of Kester Capital, said: “It has been a pleasure to work alongside Sapna and her team over the last 6 years building Avania into the leading medtech CRO platform. We are delighted to have the opportunity to invest alongside Astorg and continue our involvement in this exceptional business.”

Sapna Hornyak, CEO of Avania, said: “Since joining Avania in 2018, we have succeeded in building a unique global business in the medtech CRO space. Kester has been a valued and supportive partner in helping us achieve our ambitions and we look forward to having them as an investor in an exciting next chapter for the business.”

Edouard Pillot, Managing Partner of Astorg Mid-Cap, said: “We are extremely pleased to partner with Sapna and her team, as well as Kester, on this transaction. Being one of the global leaders in a profitable and fast-growing niche market, Avania squarely fits with Astorg’s investment criteria and we are delighted to have Avania as our first Mid-Cap Healthcare deal, sitting within Astorg’s broader Healthcare portfolio.”

June 2022:  Kester Capital, the primary buyout specialist, has successfully refinanced two of its portfolio companies, Atec and Vixio. Both businesses have demonstrated a track record of very strong revenue and profitability growth over an extended period, resulting in considerable lender appetite for both companies. 

Atec is a leader in digital insurance distribution, currently servicing a number of niche personal and commercial markets across the UK. Atec has developed a competitive advantage through its use of data and analytics, and its deployment of technology to improve efficiencies across all parts of the insurance value chain. 

Vixio is the market leader in the provision of regulatory and compliance information, data and analysis to the payments and gambling markets. Through its subscription-based products, which account for over 90% of revenue, the business enables compliance and legal teams around the world to manage risk confidently and discover new market opportunities by providing in-depth insight, analysis, commentary and research. 

Cameron Crockett, Managing Partner of Kester Capital commented: “We are very pleased to have secured refinancings for Atec and Vixio, which is a reflection of the continued strong performance of Kester’s portfolio and the great progress these businesses have made over the past few years.“

June 2022: Optibrium™, a developer of software for drug discovery, today announced it has secured further investment from existing investors Kester Capital, a leading UK mid-market private equity firm. Typically investing in high potential, innovative life science companies, Kester Capital will continue to support the Company to drive its growth and commercial success. The investment will be used to further develop and commercialise Optibrium’s computer-aided drug discovery technologies, with future appointments to the senior leadership team and continued expansion across Europe and the United States, including a recent move to a new head office in Cambridge, UK. 

The funding follows the initial investment by Kester Capital in February 2021 and reflects the success of the business as it demonstrates ARR growth in excess of 25% for the last 3 years. Recent opportunities to collaborate with strategic partners, the development of the latest generative chemistry technology and roll-out of innovative new software features, have catalysed the growth of Optibrium’s customer base.

More than 170 organisations worldwide currently deploy Optibrium’s in silico drug discovery technologies and AI platforms in their research programmes, including five of the top ten global pharmaceutical companies. The Company’s products enable preclinical drug discovery, focusing on ‘hit to lead’ and ‘lead optimisation’ phases extracting maximum value from pharmaceutical data, to confidently target high-quality compounds and accelerate discovery cycles. Its product, StarDrop™, is a comprehensive suite of integrated software for small molecule design, optimisation, and data analysis that enhances the speed and productivity of the drug discovery process. Cerella™, Optibrium's proven artificial intelligence platform, empowers project teams with valuable insights from complex drug discovery data to maximise the success of preclinical discovery projects.

Optibrium’s CEO, Dr Matthew Segall commented: “It's been an incredible year, with Kester Capital’s original investment affording us the opportunity to take the company to new heights as we successfully launched Cerella, our ground-breaking new AI platform, and actioned ambitious plans to grow the company. I am delighted that due to this success, Kester is investing further and their continued support will allow us to accelerate our product development plans and further capitalise on the substantial market opportunities.”

Adam Maidment, Managing Partner of Kester Capital, said: “Optibrium’s cutting edge software continues to drive some of the most exciting developments within computer-aided drug discovery. In the last year, we have been tremendously impressed by  Optibrium’s ingenuity and the business’ achievements. We also appreciate the talent and expertise demonstrated by the team as the business continues to thrive.” 

The market for computer-aided drug discovery (CADD) is a fast-growing sector, driven by the increasing capabilities and sophistication of software tools that can deliver material cost and time savings for drug developers. Independent market research predicts that the global CADD market will surpass $4.8 billion by 2026, rising from $1.5 billion in 2018 at a CAGR of 15.5%.

For further information on Optibrium, StarDrop or Cerella, please visit www.optibrium.com, contact info@optibrium.com or call +44 1223 815900

January 2022:  Kester Capital (“Kester”), the primary buyout specialist, has promoted Peter Ralph to Partner. Peter joined Kester in 2019 and has been instrumental in the growth and success of the business. He has completed a number of deals for Kester and sits on the board of YouGarden and Optibrium. At the same time, Daisy Driscoll has joined Kester as an Associate. Daisy previously spent 3 years at Strategy&, the strategic consulting arm of PwC, where she had a particular focus on healthcare. Daisy is a graduate of Cambridge University with a degree in Geography. 

The promotion and new hire come after a busy year for Kester as it continues to seek out compelling investment opportunities in the UK lower mid-market. Kester completed two new platform investments in 2021 and four strategic portfolio acquisitions as well as exiting Frontier Medical at a 3.4x money multiple.

Adam Maidment, Managing Partner of Kester Capital, commented: “We are delighted to announce Peter’s promotion to Partner. Peter has been a great asset for Kester Capital and this promotion is recognition of his value to the business and the contribution he has made. We are also very pleased to welcome Daisy to our growing team. She brings valuable and highly relevant experience to the business.”

November 2021:  Jollyes, a leading pet retailer in the UK, today announced it was buying Bannerbrook Pets for an undisclosed sum. 

Established by entrepreneurs Steve Teasdale and Andy Gattner in 2004, the Bannerbrook Pets store in Coventry has built up a loyal customer base through its wide range of premium brands and strong focus on providing excellent customer service.

The acquisition brings together two businesses dedicated to high quality and personal service for owners and their pets. Customers at Bannerbrook Pets will still be able find the same great ranges they’ve come to appreciate, with advice provided by its expert staff.

The agreement to purchase Bannerbrook Pets is the latest move by Kester Capital-backed Jollyes to accelerate its growth plans. It follows the acquisition in October of The Pet Store and its three locations in Yorkshire. Bannerbrook Pets will complement Jollyes’ existing Midlands outlets in Willenhall, Cannock and Kettering. 

In its most recent quarter, Jollyes delivered 21 per cent like-for-like growth compared to the same period in 2019. It has achieved five-star Trust Pilot ratings for 23 stores and an average 4.7 score across the Jollyes estate, underlining its commitment to the highest standards of customer service.

Following this investment, Jollyes expects to open more new stores through both the targeted strategic acquisition of smaller pet retailers and taking on new leases in carefully thought-through locations across Great Britain and Northern Ireland. 

Richard Cotter, Jollyes’ executive chairman, said: “Steve and Andy have built up a fantastic business and one that has developed a dedicated customer base in the area. While we’ve moved quickly, the acquisition is the culmination of weeks of detailed negotiations to make sure that Steve and Andy were comfortable with the deal. We’re excited about this latest addition to our family which marks another big step in our growth plans and brings Jollyes to a new Midlands location.” 

Steve Teasdale and Andy Gattner, founders of Bannerbrook Pets, said: “All of us at Bannerbrook Pets are looking forward to wearing the iconic Jollyes red fleece. Over the course of the last few months, we’ve got to know the Jollyes team well and they’ve been fantastic to deal with during this whole process. It was very important to us to find a buyer that shared the same culture and values as we do and we’re looking forward to working with them as they take the business on to the next level.”

October 2021:  Jollyes, a leading pet retailer in the UK, today announced it was buying The Pet Store and its three Yorkshire stores for an undisclosed sum.

Established by Barnsley entrepreneur Liz Bowers in 1991, The Pet Store has built up a loyal customer following in Yorkshire, focusing on customer service and hard-to-find premium brands from her stores in Barnsley, Denby Dale and Wakefield.

The acquisition is a marriage of two businesses dedicated to high quality and personal service for pet owners – in a recent review of Yorkshire pet shops, both Jollyes and The Pet Store were named the number one and number two stores in the county respectively.

The agreement to purchase The Pet Store is the latest move by Kester Capital-backed Jollyes to accelerate its growth plans. Its 10 employees will join the 720-strong workforce across Jollyes’ nationwide network. The three stores will complement Jollyes existing outlets in Yorkshire at Doncaster, Halifax, Keighley, Leeds, Selby, Sheffield and Wakefield.

In its most recent quarter, Jollyes delivered 21 per cent like-for-like growth compared to the same period in 2019. It has achieved five-star Trust Pilot ratings for 23 stores and an average of 4.7 across the Jollyes estate, underlining its commitment to the highest standards of customer service.

Following this investment, Jollyes expects to open more new stores through both the targeted strategic acquisition of smaller pet retailers and taking on new leases in carefully thought-through locations across Great Britain and Northern Ireland.

Richard Cotter, Jollyes’ executive chairman, said: “Liz has built up a wonderful business over the last 30 years – it’s clear her customers love the whole team and the service they’ve given Yorkshire pet lovers. Nothing pleases us more than that Liz has agreed to help lead the transition at the three stores as the team joins our Jollyes family. We’re excited at the addition of The Pet Store to our family and the start we’ve made to our growth plans.”

Liz Bowers, the founder of The Pet Store, said: “We all can’t wait to start wearing the Jollyes red jumper. Over the course of the last few months, we’ve got to know the Jollyes team well and they’ve been fantastic to deal with. They’re already family. I know Jollyes share the same values we do and I’m certain the business I’ve nurtured over the last three decades is in very good hands.”

15 October 2021: Kester Capital (“Kester”), the primary buyout specialist, today announced its investment in Rephine, a leading provider of Good Manufacturing/Clinical Practice (GMP/GCP) audits and regulatory consulting services to the pharmaceutical industry.

The investment represents Kester’s fourth investment in the Life Sciences sector, and the fourth investment out of its latest fund, Kester Capital II, which closed at its hard cap in August 2020.  It also comes at a time of significant positive momentum for Kester, which recently exited Frontier Medical (netting a 3.4x return for its investors), completed two bolt-on acquisitions, and made two hires into its investment team.

Headquartered in Stevenage, and with offices in India and Turkey, Rephine is a fast-growing business that has pioneered a differentiated approach to GMP/GCP auditing through its audit library model.  This innovative solution addresses common auditee and customer pain points caused by increasingly time-consuming and onerous auditing requirements.  

With pharmaceutical supply chains and regulations continuing to grow in complexity, Rephine is well positioned to benefit from these strong market tailwinds.  This new partnership with Kester will allow Rephine to invest in growing its audit library and broadening its service offering into other GxP audit areas.

Following the acquisition, Adam Sherlock, an experienced life science senior executive, will join the business as CEO, taking over from retiring CEO Rino Coladangelo.  In addition, Maureen Coleman, who has held several executive, NED and Chair roles in the life sciences sector, will join as Chair.

Adam Sherlock, incoming CEO, said: “This deal is an important and significant milestone for Rephine, and we are delighted to be partnering with Kester Capital. Rephine has huge potential for growth, and I am looking forward to leading the organisation as we move into this next phase.”

Adam Maidment, Managing Partner of Kester Capital, said: “Rephine provides an invaluable service to its auditees and customers through its differentiated audit library model. We are delighted to be partnering with Adam, Maureen and the existing management team to grow the business organically and through acquisition.”

Appointment brings extensive pharmaceutical services and Board experience to drive commercial growth and development of new products to improve speed, efficiency, and productivity of drug discovery

CAMBRIDGE, UK, 14 September 2021 – Optibrium™, a developer of software for drug discovery, today announced the appointment of Professor Andy Black as non-executive Chair of its Board of Directors. Following the company’s recent investment from Kester Capital, the appointment will help to continue Optibrium’s strong commercial growth calling on Andy’s extensive experience in leading strategic expansion. This will include the continued advancement of software for drug discovery, focusing on the ‘hit-to-lead’ and ‘lead optimisation’ phases, extracting maximum value from pharmaceutical data, confidently targeting high-quality compounds, and accelerating discovery cycles.

With deep industry insight spanning more than 20 years, Andy joins Optibrium as non-executive Chair with extensive board experience, devising and leading strategic change and company growth, including chairman roles at Synetic Life Sciences, a life science industry-focused consultancy with deep expertise in the research, development and commercialisation of products, and Sygnature Discovery. As Chair of Sygnature Discovery, a leading independent provider of integrated drug discovery resource and expertise, Andy advised the company as it went through a phase of rapid growth and successful expansion in the US, adding two new sites. As Professor of Practice at King’s College London, Andy teaches on entrepreneurship and supports both the university and King’s Health Partners with commercial partnerships. 

Prior to his current roles, Andy co-founded Kinapse, an international business providing expert advisory and implementation services to life science industries, sitting as CEO and subsequently Board Director. In recognition of the company’s success, Kinapse received six Fast Track Awards and was chosen by London & Partners as one of the 10 International Growth Heroes in 2016.

Dr Matthew Segall, Co-founder and CEO at Optibrium, commented: “We are delighted to be working with Andy, benefitting from his experience to guide Optibrium and continue our strong growth. His deep industry understanding, combined with having chaired private equity-backed companies through rapid expansion, makes him invaluable as a sounding board to guide our strategy and continued success.”

Professor Andy Black, Chair of the Board at Optibrium, said: “Computational drug discovery solutions are a critical component for the success of drug discovery. I am convinced by Optibrium’s products, with a rounded portfolio that includes ground-breaking AI-based next-generation solutions. I am excited to be working with this driven and exceptional team and continue to help our customers transform drug discovery.”

July 2021:  Kester Capital, the primary buyout specialist, has made two further additions to its investment team. Thomas Holroyd joins as Principal and Rob Henderson as Vice President.

Thomas Holroyd brings a wealth of prior investment experience having spent seven years working in private equity for Vitruvian Partners and Chiltern Capital as well as a number of years at mid-market advisory firm, Arrowpoint Advisory (previously Livingstone Partners). Thomas began his career at PwC, where he qualified as an accountant. 

Rob Henderson has spent the last six years in private equity and venture capital with Albion Capital and Root Capital.  Prior to that, he spent four years at KPMG, working in the corporate finance and restructuring teams, where he also qualified as an accountant.

These hires come on the back of a significant level of deal activity for Kester in 2021. Kester recently announced the sale of Frontier Medical Group’s Skin and Wound Care business to Agilitas, having sold the Infection Prevention division to HIG-backed Vernacare in 2020. In aggregate, the investment in Frontier generated a 3.4x return for Kester Capital. In addition, in the last four weeks Kester announced two portfolio acquisitions: medtech CRO, Avania, acquired US competitor Imarc, accelerating its global expansion and bringing the total number of strategic acquisitions under Kester’s ownership to four; and, You Garden, an online horticulture business, announced the acquisition of Gardening Direct. Earlier this year, Kester completed a new investment in Optibrium, a drug discovery software provider to the pharmaceutical and biotech industries.

Adam Maidment, Managing Partner of Kester Capital, commented “We are delighted to welcome Thomas and Rob to the team. This is a busy time for Kester as we look to deploy our current fund and develop the portfolio. Both Thomas and Rob bring with them valuable investment experience and will be key members of the team.”

1 July 2021:  Kester Capital is pleased to announce that YouGarden, the UK’s leading multi-channel retailer of horticultural products, has acquired Gardening Direct, one of the UK’s leading online and mail order suppliers of live plants.

The acquisition will enhance YouGarden’s product proposition and enable it to leverage its specialist infrastructure, management expertise and operations to improve the overall consumer experience. 

Underpinned by its unique data-driven model as well as its curated easy-to-understand product proposition and market-leading customer service, YouGarden has disrupted the UK gardening market to achieve consistent, profitable growth and establish itself as the UK’s leading multi-channel retailer of horticultural products. The Gardening Direct acquisition builds on the business’s long-term track record of profitable organic growth, including a pre-Covid 5-year CAGR for both revenue and EBITDA of 45+%, and FY19-FY20 CAGR for both revenue and EBITDA of 100+%. 

Peter McDermott, YouGarden’s Founder and CEO said: “We are delighted to complete this acquisition of a well-regarded brand in the growing garden home shopping sector. We look forward to, amongst other things, applying our procurement, fulfilment and customer service capabilities to provide our new Gardening Direct customers the same levels of outstanding service that have been the building blocks of YouGarden’s success to date.”

Cameron Crockett, Managing Partner of Kester Capital, commented: “YouGarden is a high growth, innovative ecommerce business operating in a highly specialist sector. The business has grown rapidly since it was founded by Peter McDermott in 2011 and we are pleased to support this acquisition which adds further breadth and scale to the YouGarden offering. The underlying market dynamics are hugely positive and we are optimistic about the future for YouGarden.”

About YouGarden:  YouGarden operates in the large and growing UK gardening market, estimated to be worth £4.4bn annually in 2020. Underpinned by a data-led approach, specialist infrastructure, and deep horticultural sector expertise, YouGarden sells a curated range of gardening products to gardening enthusiasts across the UK through both direct-to-consumer and business-to-business channels. 

Founded in 2011, YouGarden has served more than one million customers and, during 2020 alone, the company shipped more than two million orders. Its Members Club, which provides exclusive content, offers and competitions, now comprises tens of thousands of customers.

In 2020 the Group was admitted to the Sunday Times’s Fast Track 100 and won the Growing Business Awards in 2019.

June 2021:  Avania, a leading, global medical technology CRO today announced its acquisition of IMARC, a highly respected medical device CRO headquartered in Strongsville, Ohio and providing services throughout the United States. IMARC brings more than two decades of full-service clinical research oversight to its clients, including monitoring, auditing, safety, data management and training. This acquisition by Avania is the fourth under Kester’s ownership and will accelerate the global expansion of the business.

Sapna Hornyak, Avania’s CEO said: “At Avania we are focused on building a high-quality, full-service specialist medical technology CRO with global reach. We are delighted to welcome the IMARC team, with whom we have had the pleasure of collaborating for some time. They bring a great commitment to client service and outcomes and allow us to offer our clients additional depth and strength in the United States, complementing our existing global operations perfectly.”

IMARC clients will benefit from Avania’s extended international footprint, gaining access to the company’s extensive network in the EU and Australia. Additionally, Avania brings enhanced services to the combined companies — including biostatistics, strategic consulting, regulatory, and medical writing.

“Avania’s geographic and therapeutic area strengths make them the perfect strategic complement to IMARC,” said Sandra Maddock, CEO of IMARC. “Adding IMARC’s portfolio of capabilities to Avania’s will provide clients with a single-source provider of extensive, specialized medical device expertise combined with global reach.”

Adam Maidment, Managing Partner of Kester Capital, commented: “This latest acquisition cements Avania’s position as the leading, global medtech focused CRO. The market dynamics for Avania remain extremely positive and we are excited about the growth prospects for the business both organically and through further, strategic acquisitions.”

2 June 2021:  Kester Capital, the primary buyout specialist, has announced the sale of Frontier Medical Group to funds advised by Agilitas Private Equity, netting 3.4x and a 30% IRR of for its investors.  

This is the fourth exit from Kester’s last fund to have achieved a return of over 3.0x.  This fund, which closed in 2013, now only holds two remaining assets.  The firm’s current fund Kester Capital II closed above target at its hard cap of £90 million in August 2020.

The sale of Frontier Medical comes three months after Kester Capital successfully refinanced the business, in tandem with two additional portfolio companies (Avania and YouGarden), on the back of strong revenue and profit growth in each of these companies over the last 18 months. Frontier’s non-core Infection Prevention business was sold in a carve-out to Vernacare in July 2020.

Kester Capital acquired Frontier Medical in 2013 and helped it to grow from a UK focused family-owned business into a leading manufacturer and supplier of Pressure Ulcer Prevention and Infection Prevention products to healthcare providers globally. During Kester Capital’s investment period, the Wales-headquartered business experienced significant international expansion and new product development, resulting in an increase of export revenues by 160% and total revenues by over 60%. 

As a primary buy-out from the founding family, Frontier Medical exemplifies the sort of business that Kester Capital seeks to back. Having facilitated the succession of the founder through the recruitment of a new senior leadership team led by Simon Jackson, Frontier Medical grew through international expansion as well as through strategic acquisition to cement its leading position in the skin and wound care market.  This was supported by significant investment in sales, marketing, operations, clinical evidence, and new product development.

Frontier Medical won the inaugural National BVCA “Responsible Portfolio Company Award” in 2017. Frontier Medical also won the award for “Business Transformation Management Team” at the BVCA Wales Management Team Awards 2019 and was included in The London Stock Exchange Group’s “1000 Companies to Inspire Britain 2019”, an annual celebration of some of the fastest-growing and most dynamic small and medium-sized enterprises in the UK.

Cameron Crockett, Managing Partner of Kester Capital, commented: “We would like to thank the Frontier team, led by Simon Jackson, Matthew Bambery and Frank Collins, for their exceptional work over the last seven years. It has been a pleasure to partner with such an outstanding team and we wish them, the wider team and the business every success for the future.”

Simon Jackson, CEO at Frontier Medical, added: “Kester Capital has been a great long-term partner and strong supporter of our ambitious plans. Together we have been able to achieve a great result for shareholders and most importantly a very favourable outlook for our business.”

01 March 2021: Kester Capital, the primary buyout specialist, has successfully refinanced three of its portfolio companies following strong revenue and profit growth over the last 18 months.  Kester’s sector focus and track record has resulted in strong lender appetite for three of its portfolio companies: Avania, YouGarden and Frontier Medical.

The deals come following a busy start to the year for Kester which recently announced its investment in drug discovery business, Optibrium, as well as the expansion of its investment team with a run of new hires.

Avania is a leading, global full-service contract research organization focused on the management of clinical studies for medical devices, IVDs, biologics, and device-drug combination products internationally.  Headquartered in the Netherlands, Kester Capital acquired the business in 2016 and has driven an increasingly global presence through organic and acquisitive growth. Since Kester’s initial investment the business has more than quadrupled its revenue.  The deal sees Avania refinance its existing banking facilities with Crescent Capital which will enable Kester to position Avania well for its next phase of organic and acquisitive growth.

Headquartered in Lincolnshire, YouGarden is the UK’s leading specialist e-commerce retailer of horticultural products.  Over the last 5 years the business has delivered an organic compound annual growth rate of over 50%. This impressive revenue growth has been accelerating due to the increasing trend of consumers to shop online. Coupled with a high level of profit conversion, the business was able to secure increased facilities from Santander and deliver a strong return to shareholders.

Frontier Medical, headquartered in Wales, is a specialist medical device business focused on the global pressure area care market. Since Kester Capital’s involvement, the business has seen significant international expansion and a broadening of the offering through new product development. These initiatives have seen export revenues grow by 160% and total revenues by over 60%.   Last summer, Frontier sold its non-core infection prevention division and following this has secured new loan facilities from Crescent Capital. As a result of the refinancing, Kester has now returned over 2x its original investment in Frontier.

Cameron Crockett, Managing Partner of Kester Capital commented: “We are delighted to have secured refinancings for three of our portfolio companies, a real testament to the strength of the portfolio and the excellent performance of these businesses in challenging circumstance.  We continue to be a supportive partner to Avania, YouGarden and Frontier and we are delighted that both Crescent Capital and Santander were able to deliver attractive debt packages to support continued development within these market leading businesses.”

15 February 2021: Kester Capital, the primary buyout specialist, has expanded its investment team by hiring three new Associates: David Fernie, Jack Murphy and Conor O’Gorman.  Earlier this year, Ben Woolley was promoted to Vice President. Ben joined Kester in 2018 and has been involved in a number of Kester’s recent investments.

The new hires and promotion follow Kester’s announcement last week that it completed its investment in drug discovery software business Optibrium, its third investment in the Life Sciences sector. 

David Fernie was previously at PwC originally working in their assurance practice, following which he moved into the Healthcare M&A team advising on transactions across a range of healthcare subsectors.  

Jack Murphy spent over five years at KPMG latterly working in the M&A team focused on the business services and technology sectors. 

Conor O’Gorman joins Kester from Investec’s investment banking division, where he provided M&A advisory services to a range of UK mid-market clients, with a particular focus on financial services and education.

Adam Maidment, Managing Partner of Kester Capital, commented “Having closed our latest fund towards the end of last year we are now looking to ramp up activity and are very pleased to have David, Jack and Conor on board.  They join Kester at a busy time and strengthening our investment team will enable us to expand our pipeline as we look for new deal opportunities and bolt-on acquisitions for our investee companies.”

Cameron Crockett, Managing Partner of Kester Capital, added: “As well as expanding the team, we are delighted to promote Ben to Vice President, in recognition of the significant and valuable contribution he has made to Kester Capital.  Despite Covid, we are seeing significant activity within the lower mid-market and remain focused on making investments in ambitious UK companies and delivering strong returns to our investors.”

8 February 2021: Kester Capital (“Kester”), the primary buyout specialist, today announced its investment in Optibrium, a drug discovery software provider to the pharmaceutical and biotech industries.  The business’ customer base includes five of the top ten global pharmaceutical companies.

This off-market deal is Kester Capital’s third investment in the Life Sciences sector and follows the successful closing of its latest fund, Kester Capital II, which had its final close in August 2020 at its hard cap.  Despite challenging market conditions, the fundraise was oversubscribed and exceeded its target with a diverse group of new and existing institutional investors.

Optibrium was founded in 2009 by Matt Segall, CEO, and Ed Champness, Chief Scientific Officer, both of whom will continue in their existing roles to drive the future growth of the business.  Alongside the management team, Kester plans to develop the business through organic growth and acquisitions.

Optibrium is based in Cambridge and has offices in the USA in Boston and San Francisco.  Its StarDrop™ product is a complete platform of integrated software for small molecule design, optimisation and data analysis that enhances the speed and productivity of the drug discovery process. Optibrium’s new Cerella™ product delivers groundbreaking and proven artificial intelligence technology that learns from complex drug discovery data to target high-potential chemical compounds.

The market for computer aided drug discovery (CADD) is fast-growing, driven by the increasing capabilities and sophistication of software tools that can deliver material cost and time savings for drug developers. According to a research report on the CADD market by Research Dive, the global market for CADD is forecast to surpass $4.8 billion by 2026, rising from $1.5 billion in 2018 at a CAGR of 15.5%.

Adam Maidment, managing partner of Kester Capital, said: “Optibrium is a cutting edge software business that is driving some of the most exciting developments within computer aided drug discovery.  We had been tracking the business for some time and were really impressed by the team and the business’ achievements.  We are looking forward to working with Matt and Ed to grow the business both organically and through acquisition.”

Matt Segall, CEO of Optibrium said:  “We are delighted to have Kester Capital on board as an investment partner to continue the successful evolution of the business.  Kester has extensive experience in the life sciences sector and we are looking forward to working with them to capitalise on the substantial market tailwinds.”

In a recent collaboration with the Open Source Malaria project, Optibrium deployed the combined capabilities of StarDrop™ and Cerella® to design new compounds targeting a novel mechanism of action in Plasmodium falciparum, the deadliest species of malaria-causing parasites. The molecule proposed by Optibrium was the only example, out of six submitted by different organisations, that was experimentally confirmed to be active, in excellent agreement with the predictions.

3rd December 2020: This year’s special Covid-19 edition of the Sunday Times Virgin Atlantic Fast Track 100 highlights the important contribution that private companies have made to the UK during the pandemic.  After a number of years of impressive organic growth, we are pleased that YouGarden has been included on this prestigious list.

Headquartered in Lincolnshire, YouGarden is the UK’s leading e-commerce retailer of horticultural products. The business was established in 2012 to capitalise on two big trends, the growing propensity of consumers to shop online, and the increasing interest in gardening. Kester Capital backed the MBO of the business in October last year.

Sir Richard Branson, founder of Virgin Atlantic and Virgin Group, which has supported Fast Track 100 for all 24 years, said: “While we are living in extremely uncertain and challenging times, there is one thing I am certain of: entrepreneurs are the dreamers, the doers, and the innovators that have the power to have a positive impact on society. There are so many inspiring examples of this on the Fast Track 100 league table showing this is just as true, if not more so, in 2020 as it ever has been.”

Kester Capital is a primary buyout specialist providing UK businesses with capital and support to unlock growth potential.

10th August 2020: Kester Capital (“Kester”), the primary buyout specialist, today announced that it has successfully closed its latest fund, Kester Capital II, at its hard cap of £90 million.  Despite challenging market conditions, the fundraise was oversubscribed and exceeded its target with a diverse group of new and existing UK, Continental European and US institutional investors.

Kester’s second fund will maintain the firm’s strategy of investing in UK SMEs requiring institutional capital for the first time, with a focus on Healthcare, Business and Financial Services and TMT.  These sectors enjoy high growth, as well as opportunities for technological improvement and market consolidation.

During the fundraising period, Kester Capital has continued to develop its portfolio, which is trading well despite Covid-19, and has completed the MBOs of YouGarden and Vixio (formerly ComplianceOnline).  Last month, it completed a successful refinancing of YouGarden, just nine months after the initial investment, returning over 60% of cost to its investors. Kester has also continued to support buy and build activity within its portfolio, as well as completing the recent sale of Frontier Medical’s Infection Prevention division to Vernacare (backed by H.I.G. Capital).

Adam Maidment, Managing Partner of Kester Capital, said: “We are delighted to have exceeded our target and reached our hard cap thanks to the support of existing and new investors. Although market conditions have been challenging in the wake of the Covid-19 pandemic, our portfolio has continued to perform strongly and it is against this positive backdrop that our investors were able to conduct much of their diligence work remotely over the last three months and confidently commit to our second fund.”

Cameron Crockett, Managing Partner of Kester Capital, said: “Having closed the new fund, we are now actively looking for new investment opportunities as well as expanding our investment team. We see significant potential in the UK lower mid-market where fundamentally attractive businesses can achieve a level of growth that bucks the wider market trend, and in turn require an investment partner like us to fulfil their ambitions.”

Etienne Deshormes, CEO of Elm Capital, said: “Raising an oversubscribed fund in current market conditions is quite an achievement and we would like to congratulate Kester for this significant accomplishment. Investors were particularly attracted by the fund strategy and strong portfolio performance, at a time when many companies are suffering from the effect of the Covid-19 crisis. We were able to raise commitments in excess of the fund target in less than nine months by working with investors who were still actively investing during this period.”

Kester Capital is a primary buyout specialist, led by an entrepreneurial and experienced team and focused on UK businesses that require capital in order to unlock their potential.

Kester Capital was advised on the fundraising by Elm Capital (placement agent) and Travers Smith (legal).

10th July 2020: Kester Capital (“Kester”), the primary buyout specialist, today announced that its portfolio company Frontier Medical, has sold its Infection Prevention  business in a carve-out to Vernacare, (backed by H.I.G. Capital). The deal includes the brands Sharpsafe®, Clinisafe® and eXchange™. Terms of the transaction were not disclosed.

The exited businesses are industry-leaders in the Infection Prevention market providing an extensive range of sharps and clinical waste disposal solutions. Sharpsafe® was the world’s first purpose-designed plastic sharps container. With a customer base across the UK and Europe, the business operates from its site in Blackwood, Wales.

Frontier’s core division, Frontier Therapeutics, a leading provider of differentiated Skin and Wound Care products comprising the Repose®, Toto® and Dermisplus® brands, will continue to operate as usual under the direction of the existing management team led by Simon Jackson, backed by Kester Capital.

Kester Capital acquired Frontier Medical Group in 2013 and has helped it to grow from a successful family-owned business into a global medical device business with significant revenue, EBITDA and head count increases since its investment. Headquartered in Blackwood, Wales, and founded in 1966, Frontier Medical has grown to become a leading manufacturer and supplier of Pressure Ulcer Prevention and Infection Prevention products to healthcare providers in the UK and it’s Export markets around the world.

The sale comes at a busy time for Kester Capital which has completed two deals in the last 12 months; the MBO’s of YouGarden and Vixio (formerly ComplianceOnline), as well as follow on portfolio acquisitions and the expansion of its investment team.

Cameron Crockett, Managing Partner at Kester Capital, said: “We are very pleased to have completed the sale of the Infection Prevention business of Frontier Medical to Vernacare, a strategically complementary fit.  Our focus is now to continue to support the Skin and Wound Care business, Frontier Therapeutics, and to accelerate the international growth of this part of the business by capitalising on its strong clinical and market position.”

Simon Jackson, Chief Executive of Frontier Medical, said: “In recent years, driven by strong commercial and operations activity, the Infection Prevention  business has gained significant market share across its regions of operation and played a leading role in supplying health services with safe clinical waste disposal systems. We wish the team well and are certain that the combination of the businesses will support the next phase of growth.”

Frontier Medical won the award for “Business Transformation Management Team” at the BVCA Wales Management Team Awards 2019 and was also included in The London Stock Exchange Group’s “1000 Companies to Inspire Britain 2019”, an annual celebration of some of the fastest-growing and most dynamic small and medium-sized enterprises in the UK.  Frontier Medical also won the inaugural National BVCA “Responsible Portfolio Company Award” in 2017.

Kester and Frontier Medical were advised on the transaction by Deloitte (lead advisor), Travers Smith (legal advice to shareholders), TLT (legal advice to company), Grant Thornton (vendor financial due diligence) and CiL (vendor commercial due diligence).

26^th March 2020: Factory-CRO Group, a leading, full-service contract research organization, is pleased to announce it is rebranding as Avania, unveiling its new logo, new branding, and new website.

Avania brings knowledgeable experts together to form a unique CRO that advances the research of medical devices, novel technology, and combination products. The Avania team’s regional experience and global expertise starts with early strategic consulting that then guides your product from feasibility all the way through post-marketing.

“We recognize that the timing of a new brand launch during the COVID-19 pandemic is unusual. However, Avania has the unique advantage of having a global perspective in managing complex challenges, built on 30 years of experience,” said Sapna Hornyak, MBA, M.S., president and chief executive officer of Avania. “We have created a better kind of medtech CRO, one that is specialized and worldwide. Our motivated team is known for navigating medical technology to market effectively and efficiently, with expertise and integrity.”

The newly branded Avania will continue as one united global CRO, bringing together regional teams of experts across a wide range of therapeutic specialties.

About Avania

Avania is a leading, full-service contract research organization focused on the management of clinical studies for medical devices, IVDs, biologics, and device-drug combination products internationally. Avania supports products from the first-in-human phase through the post-market phase with the same customized approach. When you need to advance your medical technology, it takes Avania.

20^th January 2020: ComplianceOnline, the parent company of GamblingCompliance and PaymentsCompliance, has unveiled a new name and brand identity, cementing the company’s position as the leading provider of regulatory intelligence.        

The rebrand reflects the company’s recent investments into its product offering to deliver faster and more intuitive solutions, and to better service customers and achieve sustainable growth. 

VIXIO originates from the Latin Via, meaning path, and Axiom, meaning Universal Truth, representing the company’s values, heritage and reputation as a trusted source of independent, authoritative and actionable intelligence on fast-moving regulatory developments.

As well as introducing a new name and brand, a new website is being launched and new messaging has been created to better reflect how the company supports and enables its clients.

Mike Woolfrey, Chief Executive Officer at VIXIO, said: “Since the very beginning we’ve helped organisations confidently manage risk by providing timely information that’s accurate, free from bias and totally independent.  

“VIXIO as a brand speaks to our deep-rooted principles of truth, integrity and reliability. It illustrates our ability to be our clients guiding path, helping them find new business opportunities and gain competitive advantage. It’s a natural time for us to evolve as we develop the depth and breadth of our offering and make it easier than ever for our customers to navigate and anticipate the global regulatory environment.”

The business also organises the annual Gambling Compliance Global Regulatory Awards (GRAs), which take place on April 22^nd 2020 and recognise and celebrate individuals and teams who work tirelessly to set new standards in compliance and responsible gambling.  

Winners are selected by an independent panel of expert judges led by an external independent adjudicator, ensuring the GRAs are the most high-quality and transparent awards in the gambling industry.

About VIXIO

VIXIO is the most trusted source for independent, authoritative and actionable intelligence on fast-moving regulatory developments. We help businesses all over the world make timely, informed decisions to mitigate regulatory risk and capitalise on new opportunities.

About Kester Capital

Kester Capital is a primary buy-out specialist, led by an entrepreneurial and experienced team, and focused on UK businesses that require capital in order to unlock their potential.

Kester Capital’s YouGarden has won the “Santander Growing Business of the Year: Smaller Company (Turnover £10-25m) Award.” The awards honour the finest examples of entrepreneurship and SME growth in the country and were announced at The Pavillion at The Tower of London on the 27^th November 2019.

The Growing Business Awards recognise the country’s most outstanding companies for tremendous growth within their industries and at the same time acknowledge the UK's top entrepreneurs for their continued success.  This year’s winners spanned a huge variety of industries including healthcare, technology, food, retail and marketing.

Headquartered in Lincolnshire, YouGarden is the UK’s leading multi-channel home shopping retailer of horticultural products. The business operates through its direct-to-consumer brand YouGarden as well as acting as the gardening category manager for a number of high profile retailers including Amazon, Ideal World TV Shopping, Groupon and Shop Direct.  Kester Capital backed the MBO of the business in October this year.

Darren Hart, Head of Growth Capital at Santander UK said: “Huge congratulations to YouGarden for winning the Santander Growing Business of the Year: Smaller Company (Turnover £10-25m) Award.  They stood out across a strong field of finalists with their meticulous attention to delivering their products over multiple channels as well as the impressive return on investment across the whole business.  We’re delighted to able to support ambitious UK companies like YouGarden through these awards and the wider holistic support we offer to small and medium-sized businesses up and down the country.”

Cameron Crockett, Managing Partner at Kester Capital said: “YouGarden is an impressive business that is delivering significant growth year on year and we are delighted to have supported the recent MBO of the business.  It is a huge achievement to be recongnised by these awards and this would not be possible without the hard work and dedication of Peter McDermott and the YouGarden team.”

Kester Capital is a primary buyout specialist providing UK businesses with capital and support to unlock growth potential.

Adam Maidment, co-Managing Partner of Kester Capital, has been included in the “Future 40” compiled by Real Deals magazine, which recognises the dealmakers that will set the agenda for the future of the European private equity industry. These dealmakers have been selected by an experienced judging panel of industry peers.

This recognition comes at a time when Kester has been active in expanding its investment team with five new hires announced this year, including Head of Off-Market Origination, Rob Chapman, who joined in October.  Kester has also maintained a high level of transactional activity with two platform investments and two portfolio bolt-on acquisitions completed in the last twelve months.  Since August, Kester has announced the MBOs of YouGarden, the UK’s leading multi-channel home shopping retailer of horticultural products; and of ComplianceOnline, a leading provider of global regulatory intelligence to the payment and gambling sectors. 

Adam Maidment, co-Managing Partner of Kester Capital, said: “It is flattering to be recognised by the Real Deals Future 40.  Marking the end of an exciting year, it very much reflects the achievements of the whole Kester team and our rapidly expanding portfolio of UK businesses.”

Kester Capital is a primary buy-out specialist, led by entrepreneurial and experienced team, and focused on UK businesses that require capital in order to unlock their potential.

Kester Capital (“Kester”), the primary buyout specialist, today announced that it has backed the MBO of YouGarden, the UK’s leading multi-channel home shopping retailer of horticultural products. The business operates through its direct-to-consumer brand YouGarden as well as acting as a gardening category manager for a number of high profile retailers including Amazon, Ideal World TV Shopping, Groupon and Shop Direct.

This is the second deal for Kester in three months, following the management buyout in August of ComplianceOnline, the provider of global regulatory intelligence to the payment and gambling sectors. It comes at a busy time for the firm which also recently expanded its investment team following four new hires and completed its third portfolio bolt-on acquisition in twelve months.

Headquartered in Lincolnshire, YouGarden is a fast-growing business that has disrupted the live product subsector of the UK gardening market through its multi-channel offering that meets consumer demand for choice, speed and flexibility of delivery of live plants, to which the traditional garden centres and DIY providers have struggled to adapt. The business has successfully monetised a diverse range of routes to market, selling direct to consumers via its own branded sales channels including online (via its two websites), members club and traditional home shopping sales channels, with a growing customer base of over 800,000.

YouGarden was founded by entrepreneur and lifelong gardener Peter McDermott (Managing Director) and in the last twelve months has reached revenues of over £17 million. Peter and the management team have delivered impressive organic growth since the business was founded in 2012, with revenues increasing by over 35% p.a. in each of the last five years. This has been achieved through deep horticultural domain expertise, targeted product selection and procurement, and an exceptional focus on online and offline marketing ROI and customer service.

The Kester Capital team have known Peter and the business since it was founded and provided seed capital in 2012.

Cameron Crockett, Managing Partner of Kester Capital, said: “YouGarden is a well-diversified and highly scalable business delivering significant growth year on year. Led by a best-in-class management team with a unique skillset of deep horticultural knowledge, live plant supply chain management and strong marketing and customer service skills, the business has succeeded through its focus on delivering the very best to its customers. We are delighted to be backing YouGarden, which has continually taken market share from the traditional garden centre and legacy home shopping retailers.”

Peter McDermott, Managing Director of YouGarden said: “Our partnership with Kester Capital gives us the extra firepower and support to accelerate the company’s expansion plans. The team at Kester really understands our business and have a long track record of supporting growth in UK businesses. We are excited to work with them in order to take YouGarden to the next level.”

Kester Capital is a primary buy-out specialist, led by an entrepreneurial and experienced team, and focused on UK businesses that require capital in order to unlock their potential.

ComplianceOnline, a leading provider of global regulatory intelligence to the gambling and payment sectors, has been acquired in a management buy-out, backed by the primary buyout specialist Kester Capital (“Kester”).

The investment comes at a time of significant momentum for Kester, which recently expanded its investment team and completed its third portfolio bolt-on acquisition in twelve months.

Through its Gambling Compliance, Payments Compliance and RegData products, ComplianceOnline enables compliance and legal teams around the world to manage risk confidently and discover new market opportunities by providing in-depth insight, analysis, commentary and research. As the volume and pace of regulation increases globally, ComplianceOnline is well positioned to take advantage of this growing market. Since inception in 2007, the Company has been at the forefront of the gambling regulatory landscape, growing its subscription-based information services at an exceptional rate, and, in 2015, launched a similar offering for the payments industry. This new partnership with Kester Capital means that ComplianceOnline is able to fuel its ambitious growth plans, continuing to help industry professionals make timely and informed strategic business decisions.

Following the acquisition, founder David Morgan will step down. Mike Woolfrey, who has been CEO since 2018, will continue to lead the business. Prior to joining ComplianceOnline, Mike held numerous senior executive roles within B2B media and information services.

Mike Woolfrey, CEO, ComplianceOnline, said: “This deal is an important and significant milestone for ComplianceOnline, and we are delighted to be partnering with Kester Capital. We have huge potential for growth, and I am looking forward to leading the organisation as we move into this next phase”.

David Morgan, owner and outgoing Executive Chair, said: “I have been proud to have led ComplianceOnline to this point and am delighted to be handing over to Mike. His experience and expertise will take ComplianceOnline to the next chapter of growth.”

Adam Maidment, Managing Partner of Kester Capital, said: “We are delighted to be investing in ComplianceOnline and look forward to partnering with Mike and the management team. Its ambition, management talent and potential for continued strong growth make ComplianceOnline a great example of the type of business that we are looking to back with first time institutional capital and support.”

Kester Capital is a primary buy-out specialist, led by an entrepreneurial and experienced team, and focused on UK businesses that require capital in order to unlock their potential.

July 2019 - Kester Capital (“Kester”), the primary buyout specialist, has announced that portfolio company ATEC (parent company of Ceta Insurance), a tech-enabled niche insurance broker, has completed its acquisition of the UK’s largest beach hut insurance broker, Love Your Hut. This is the third portfolio bolt-on acquisition to be made by Kester in twelve months and comes in the wake of Avania’s acquisitions of Five Corners and Boston Biomedical Associates.

This latest acquisition comes at a time of significant momentum for Kester. Last month, it announced that it had expanded its investment team with four new hires.

Love Your Hut is the first of a series of acquisitions that Atec expects to make, following an MBO supported by Kester in September 2017. Established in 2013, Love Your Hut has gained a dominant position within its niche insurance sector, which includes beach huts, chalets, shepherd huts and small houses.

Cameron Crockett, Managing Partner of Kester Capital, said “ATEC’s tech-enabled insurance distribution platform has been designed to support bolt-on acquisitions with the minimum of integration disruption. Since we backed the management buyout in 2017, we have worked closely with the ATEC team to identify complementary niche businesses like Love Your Hut. We have a healthy pipeline of similar bolt-on opportunities and we are very pleased to be supporting the first of these.”

He added: “This latest bolt-on acquisition comes at an exciting time for Kester as we expand both our own investment team and our portfolio of fast-growing UK companies.”

Kester’s portfolio companies have received a number of accolades in recent months. In May, Frontier Medical Group, a diversified medical device business focused on the Skin & Wound Care and Infection Prevention markets, won the award for “Business Transformation Management Team” at the BVCA Wales Management Team Awards 2019. It is also included in The London Stock Exchange Group’s “1000 Companies to Inspire Britain 2019”, an annual celebration of some of the fastest-growing and most dynamic small and medium-sized enterprises in the UK.

Kester Capital is a primary buy-out specialist, led by an entrepreneurial and experienced team, and focused on UK businesses that require capital in order to unlock their potential.

Kester Capital’s Frontier Medical Group has scooped the award for “Business Transformation Management Team” at the BVCA Wales Management Team Awards 2019.

Revealed and presented at a ceremony in Bath, the awards are produced in association with Grant Thornton UK LLP and are an annual showcase for the best businesses in the UK, backed by private equity and venture capital. The winners will now enter into the national final where they will compete with other companies from across the country. The national winners will be announced at the BVCA Gala Dinner on 28 November 2019.

Headquartered in Pontllanfraith Wales, Frontier Medical Group is a global supplier of products for the skin/wound care and infection prevention markets. Founded in 1966, Frontier has grown to become a leading manufacturer and supplier of pressure area care and infection control products to healthcare providers in the UK and continental Europe. Kester Capital invested in the business in December 2013.

The judges commented that: “Simon Jackson and his team have done an outstanding job since the MBO in 2013, developing a family-owned company into a global medical device business. They have made huge progress improving the business, professionalising it, developing the workforce and introducing ESG initiatives.”

The judges continued: “Business growth was generated at an impressive rate and the team have created a great foundation upon which to achieve significant revenue and EBITDA increases.”

Cameron Crockett, partner at Kester Capital said: “We are very proud that one of our investee companies has won this award and it is due to the hard work and dedication of the full team behind Frontier Medical that this has been possible. Frontier Medical is an excellent example of a family owned entrepreneurial business that with the right team, support and funding, has grown into an international player.”

Kester Capital is a primary buyout specialist providing UK businesses with capital and support to unlock growth potential.

Frontier Medical also won the inaugural National BVCA “Responsible Portfolio Company Award” in 2017. The awards celebrate outstanding Environmental, Social and Corporate Governance practices within the private equity and venture capital community.

Kester Capital portfolio company, Factory-CRO Group, a leading global contract research organization (CRO) focused on medical devices and in vitro diagnostics (IVDs), and Boston Biomedical Associates (BBA) a premier full-service medical device/biotechnology CRO and consultancy based in the United States announce that they have merged.

The merger further advances the shared strategic vision to become the leading global medical device and medical technology focused CRO. Following the recent acquisitions of Five Corners, MileStone Research Organization and Clinical Device Group, the Factory-CRO Group now has specialized operations and expertise in the United States, Europe and Australia/New Zealand. This global expansion coupled with the diverse medical therapeutic expertise provides a means to efficiently service clients.

Jollyes Retail Group Limited (“Jollyes”), a leading UK pet retailer, has been acquired in a management buyout backed by Kester Capital, an independent mid-market private equity firm.

Founded in 1935, Jollyes is the UK’s second largest pet retailer with a portfolio of over 70 superstores and concessions across the UK. Jollyes focuses on providing its loyal and growing customer base with pet products and services that combine great quality and value and over time has developed a very successful range of own brand products, including its K9 and Lifestage brands. Jollyes has also recently expanded its offering to customers to include grooming and veterinary services in store.

Nick Pollard, owner and outgoing Managing Director, added: “I am delighted to be passing on Jollyes to David. I am confident his experience and passion for the sector will preserve and enhance the values of Jollyes in its next phase of growth.”

Adam Maidment, Founding Partner, Kester Capital said: “We have been very impressed by Jollyes strong pet retail offering and congratulate Nick on what he has achieved. We are looking forward to working with David and the team at Jollyes and supporting the business in its growth ambitions.”

Factory-CRO, a leading global contract research organization (CRO) focused on medical devices and in vitro diagnostics (IVDs), has announced that Five Corners is joining Factory-CRO. Five Corners is the premier device CRO in Australia, supporting the developers of medical technologies throughout Australia and New Zealand from its Sydney base.

The combination advances Factory’s strategy to become the leading global device-focused CRO. Following the recent acquisitions of Clinical Device Group and MileStone Research Organization, Factory-CRO now has specialist operations and expertise in the U.S., Europe and Asia-Pacific.

“Five Corners is thrilled to join Factory’s worldwide group following our decade-long collaboration. The merger will foster controlled growth, allowing us to better serve our clients,” said Deborah Bell, RN, CCRA, managing director of Five Corners. “The alignment of Factory’s full-service capabilities with our processes and values ensures clients gain improved access to our collective resources and global knowledge. Our clients in the U.S. and Europe now have an opportunity to have access to broader services as their needs evolve.”

“We are delighted to bring Five Corners into the Factory-CRO group,” said Dirk Meijer MD, PhD, Factory CEO. “Clients have consistently asked us to establish a global pure-play device CRO that offers specialist expertise and the highest level of service in a number of therapeutic areas. We have accepted that challenge willingly and continue to actively evaluate opportunities for further development.”

Factory-CRO, a leading global contract research organization focused on medical devices and IVDs, has announced the acquisition of MileStone Research Organization. MileStone, located in San Diego, specializes in clinical research and reimbursement solutions for the medical device and biologics industries.

“The merger with MileStone is an important step in building Factory’s operational strength and service range in North America,” said Dirk Meijer, M.D., Ph.D., Factory CEO. “MileStone is an excellent fit therapeutically, as well as culturally, and complements our existing U.S. operations in Austin, Texas, and Princeton, NJ. Milestone’s extensive expertise in orthopaedics, neurological and IVD clinical trials, as well as their reimbursement and site management service offerings, is a fantastic value-add for all our clients.”

“The combination of Factory and MileStone is good for everyone,” said Kevin Liang, Ph.D., founder of MileStone Research Organization. “Our specialization in clinical and regulatory affairs, as well as reimbursement for innovative technologies, aligns us perfectly with Factory. Factory’s full-service clinical offerings and extensive knowledge of the European regulatory environment will greatly expand our reach. The mutual commitment of both organizations to provide world-class solutions and superior client support will continue to motivate the company’s growth moving forward.”

Factory performs safety, efficacy and clinical economics studies as well as quality-of-life and post-marketing studies globally for medical device, IVD and drug-device combination products. Since 1992, the company has completed more than 450 projects in Class II and III medical devices in a wide range of therapeutic areas for some of the top global medical device manufacturers.

Kester Capital is delighted to announce that Frontier Medical Group has won the 2017 BVCA Responsible Portfolio Company Award.

The winners of the BVCA Responsible Investment Awards 2017 were announced yesterday at the BVCA Summit in London celebrating outstanding Environmental, Social and Corporate Governance practices within the private equity and venture capital community. The awards, now in their seventh year, recognise winners as standout examples of how private equity and venture capital firms are leading the way in responsible investing. This year the BVCA introduced a new category, Responsible Portfolio Company, to recognise portfolio companies who are demonstrating progress in embedding the management of ESG issues in their commercial activity.

Kester Capital’s Frontier Medical Group, won the inaugural Responsible Portfolio Company Award with the judges’ commenting: “The judges agreed that Frontier was a fantastic example of a company that considers ESG across its business, implementing initiatives throughout its commercial activity and an excellent case-study of how portfolio companies should integrate ESG in practice.”

Cameron Crockett, Founding Partner, Kester Capital said: “We are delighted that Frontier Medical has been recognised at this year’s BVCA Responsible Investment Awards for the progress they have made embedding ESG throughout their business.”

Read the full BVCA press release here: https://www.bvca.co.uk/media-and-publications/news/bvca-press-releases/details/BVCA-announces-winners-of-Responsible-Investment-Awards-2017-and-launches-new-online-guide

Read more about the BVCA Responsible Investment Awards here: https://www.bvca.co.uk/Our-Industry/Responsible-Investment/Responsible-Investment-Awards

CETA Insurance Limited (“CETA”), an innovator in niche personal and commercial insurance distribution, has been acquired in a management buyout backed by Kester Capital, a leading mid-market private equity firm.

CETA Insurance is an innovator in personal and commercial insurance distribution. Since inception, CETA has been at the forefront of tech-enabled insurance distribution and niche product and channel development. CETA has been successful at leveraging its online broking platform, diverse range of insurer relationships, strong digital marketing skills and deep data insights to develop market leading positions and recurring customer relationships in its core markets and channels.

CETA’s technology is used to distribute products in a number of niche general insurance markets, both digitally, direct to consumer, as well as through a network of over 1,500 broker and IFA members. The business employs over 120 staff from its head office in Chipping Norton, Oxfordshire, and will remain a strong supporter of the local community.

Cameron Crockett, Founding Partner, Kester Capital said: “We have been very impressed by CETA’s platform and its ability to provide a responsive service to customers and insurers through innovative use of technology and data. We look forward to supporting the business in its growth ambitions, both organically and through bolt-on acquisitions.”

The Private Equity Wire Global Awards 2017, presented on 9 June in London, recognised the best private equity fund performers and service providers during 2016 in a range of categories covering the entire private equity space.

Kester Capital was awarded best Small Buyout Exit for its sale of Garrets to Altor’s Wrist Ship Supply in January 2016.

Read the full article on Private Equity Wire here.