Intermediate Capital acquires Graphite Capital’s fund investment business

Graphite Capital has sold its fund investment business Graphite Enterprise Trust PLC to Intermediate Capital Group. No financial terms were disclosed.


Graphite Capital has sold its fund investment business to Intermediate Capital Group (“ICG”). The business manages Graphite Enterprise Trust PLC (“GET”), an investment company investing in private equity funds and private companies. Graphite established GET in 1981, raising £23 million through a listing on the London Stock Exchange.

Over the past decade, GET’s focus has expanded from investing primarily in Graphite Capital’s own funds to include a wide range of other private equity funds, both in the UK and internationally, principally in Europe. ICG’s global scale and wide range of investment strategies will help grow GET to its next stage of development.

The investment team, headed by Emma Osborne, will be transferring with Graphite Enterprise and will form a new business within ICG.

Graphite Capital will continue its successful strategy of investing in mid-sized companies in the UK, working with their management teams to develop and grow them. Its most recent fund, Graphite Capital Partners VIII, raised over £500 million in late 2013. The predecessor fund, Graphite Capital Partners VII, is the top-performing UK mid-market buy-out fund of the 2007 vintage, having successfully realised the majority of its investments, including Alexander Mann Solutions, Kurt Geiger, Education Personnel, London Square, Willowbrook Healthcare and National Fostering Agency.

Graphite Capital managing partner, Rod Richards, said: “After more than 30 years as manager, we are pleased that Graphite Enterprise and team will be passing to a group as well placed as ICG to take the company forward to the next stage of its development. We are extremely proud of our performance record with Graphite Enterprise. Under our management, the £23 million raised in the early 1980s increased to £681 million of which £180 million was returned in cash, representing a multiple of 29 times the amount subscribed. At the end of our time as manager, Graphite Enterprise is the best performing investment company across all sectors over 25 years and has out-performed its peer group over the last one, three, five and ten years. We wish ICG and the team every success in the future.”

About Graphite Capital
Graphite is a specialist provider of private equity finance to mid-market companies in the UK. Graphite focuses on management buy-outs and also invests in replacement capital, expansion finance and turnaround opportunities. It backs companies with enterprise values of £25 million to £200 million.

In September 2013 Graphite Capital raised £500 million for its eighth fund, Graphite Capital Partners VIII. The fund has made four investments: Aero Technics, a civil aircraft maintenance business; nGage, a fast-growing recruitment business serving a range of niche areas within the public and private sectors; ICR, an energy industry repair and maintenance group; and City & County Healthcare Group, the UK’s third largest home care provider.
Graphite’s previous fund, Capital Partners VII, invested in businesses in a variety of industry sectors including Corbin & King, operator of The Wolseley, The Delaunay, Brasserie Zédel, Colbert and Fischer’s restaurants and The Beaumont hotel; and Explore Learning, a fast-growing provider of tuition to children aged 5 to 14. Successful disposals from that fund include Kurt Geiger (luxury shoe retailer), Alexander Mann Solutions (recruitment process outsourcing), Education Personnel (provision of supply teachers) and London Square (house-builder focused on prime sites within the M25).

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