Inflexion banks 3x on debt advisor exit

UK mid-market firm Inflexion Private Equity has trebled its money following the sale of debt management group Harrington Brooks to buyout peer RJD Partners.

London-based RJD Partners has acquired Harrington Brooks (HB), a debt management agency, from peer Inflexion Private Equity in a second buyout for an undisclosed sum.

The deal means Inflexion has booked a 3.1x return on its investment, the firm said, having backed the business in 2005. It is Inflexion’s ninth exit from its 2003 buyout fund, it said.

Under Inflexion’s ownership, the company made four acquisitions, two of which were part-funded by additional capital from Inflexion.

HB was founded in 1998, and provides debt advice, debt management plans and individual voluntary arrangements and related non-lending services to indebted customers.

“The overall debt solutions market has experienced significant growth since 2005 driven by a rapid increase in both secured and unsecured lending, pressures on personal disposable income and an increased understanding of debt management products,” RJD said in a statement.

The company is the second-largest private operator in the UK with 37,000 customers, and delivered turnover in the year to March 2012 of £29 million ($45 million; €37million).

PNC Business Credit, HB’s existing banker, provided debt facilities to fund the buyout.