Graphite Capital seals 2.3x caravan parks exit

The mid-market firm has sold Park Holidays UK to Caledonia Investments for £172m, bringing the total value of Graphite’s exits since October 2012 to more than £1bn.

Graphite Capital has sold caravan park operator Park Holidays UK to Caledonia Investments for £172 million (conversion), generating 2.3x return multiple, according to a statement.

Park Holidays UK owns 23 caravan parks in southern England. Graphite acquired the company in 2006 for £130 million. During the investment period, Graphite helped Park Holidays UK acquire six new parks in the southwest of England and helped grow earnings before interest, tax, depreciation and amortisation by 72 percent to £20.4 million. The group’s EBTIDA has increased every year since 2008.

The sale represents Graphite’s sixth realisation in the leisure sector. The exits have generated a total return multiple of 3.1x cost and an internal return rate of 28.1 percent. Other investments in the sector include noodle bar chain Wagamama and Golden Tulip Hotels. 

Graphite has generated more than £1 billion from seven exits since October 2012. The firm has realised about £579 million of equity proceeds from an initial cost of £202 million. The transactions have generated a total return of 2.9x cost.

Graphite invests in UK-based mid-market transactions across the retail and consumer, industrials and engineering, distribution, financial services and healthcare sectors. Each investment typically has an enterprise value between £25 million and £150 million. The firm manages £1.7 billion through four private equity funds, including its Fund VIII which closed on £500 million earlier this year. 

Founded in 1981, Graphite is led by chairman of the management board Rod Richards out of a single office in London.