Innervation Capital Partners
Innervation Capital Partners (“ICP”) is a sector-focused, theme-driven investor. Proprietary deal sourcing is our primary source of sustainable competitive advantage, driving superior returns. In search of value, we focus on fragmented industries providing essential services. We exploit dislocations in pricing based on size and complexity. To execute this strategy we provide more than just capital. We work with our operating partners and proven entrepreneurs to craft a plan which realises the full potential of the business over the long term.
ICP has launched growth platforms in early years education and apprenticeship training & the Firm has completed 27 deals in the education space. ICP currently has 41 early years schools generating £9mm EBITDA (including one deal in process), with debt facilities drawn of £57mm & £12mm of equity invested. Almost 60% of the schools inspected so far have been rated as Outstanding. The combined entity is now the third-largest player in the UK Early Years sector, a £5bn market, and the leading consolidation platform in a fragmented market with over 9,000 independent operators. The Firm has raised £50 million of debt financing to date for this strategy, including 40mm from Ares, and expects to raise a further £40 million through an accordion to continue to “buy & build”. Eden, the group’s training platform with over 1,000 learners, is focusing on organic growth following the introduction of the training levy which is designed to drive apprenticeship take-up in larger enterprises. However, it also has bolt-on opportunities to exploit. We expect to operate multiple platforms in essential services and we are currently targeting an additional platform in educational recruitment.
ICP has the capacity and flexibility to invest equity from £1 million upwards, utilising partners capital, and to scale platforms to reach an Enterprise Value on exit of up to £200 million, leveraging proprietary co-investment partnerships with several leading financial institutions and family offices we have worked with successfully in the past.
We buy complexity and sell simplicity