Apollo backs Next Wave’s Delivery Group – Updated

The private equity firm has secured £35m of debt funding for its postal service portfolio company.

Apollo Global Management has provided funding to The Delivery Group, a portfolio company of UK lower mid-market firm Next Wave Partners, Private Equity International has learnt. Apollo provided £35 million ($43 million; €39 million) to the group from its direct lending platform MidCap Financial, according to a statement from Next Wave.

Next Wave has used some of the debt to finance a new acquisition – international e-commerce logistics operator P2P – refinance existing debt, and to fund working capital, PEI understands.

Before acquiring P2P, The Delivery Group was made up of two companies: Warrington-headquartered postal operator Secured Mail, which was acquired by Next Wave in 2011, and London-based CMS Network, which specializes in managed mail services and was acquired by the firm early last year.

In April 2015, the firm merged Secured Mail and CMS Network to create “a new force in the post and parcel sector,” according to CMS Network’s website. With the addition of P2P, the group has created an organisation with an estimated turnover of £200 million and over 500 employees operating from six locations, according to the statement.

Earlier this year, Next Wave portfolio company Petainer received a €100 million debt and equity investment from KKR.

Next Wave Partners declined to comment at the time. Apollo did not respond to a request for comment by press time.

Next Wave invests in lower mid-market UK and European companies, generally in the business services and consumer sectors. It currently has around £100 million in funds under management.

– Updated to include news from Next Wave Partners statement, released on 18 October.