Inflexion boosts value creation team

The UK mid-market firm has appointed Tom Green as its second value enhancement director to support strategic and operational value creation within its portfolio companies.

UK mid-market firm Inflexion Private Equity has boosted its value creation team, appointing Tom Green as a value enhancement director, according to a statement from the firm.

Green, who starts with immediate effect, will work alongside value enhancement director Jon Andrew to support strategic and operational value creation within the firm’s portfolio.

Inflexion’s value creation team also includes its international support offices in Brazil, India and China, where it recruited teams in 2012 to support portfolio development, as well as its in-house digital unit, led by digital director Charlie Cannell.

Its professionals in Brazil, India and China offer portfolio companies insight on and access to these economies to grow sales, improve cost management and increase EBITDA, Inflexion said in a statement in 2012.

Green joins Inflexion from IP legal services business CPA Global, which is backed by pan-European firm Cinven. At CPA Green was corporate development director, focused on driving growth both organically and through the origination and execution of bolt-on acquisitions across North America and Europe.

Green’s appointment follows Inflexion’s hire of Andrew Priest in July 2015, who joined as a director in the firm’s origination team to boost its network of senior industry contacts. Last year Inflexion also promoted six investment directors to partner across its partnership capital and buyout team, appointed two new investment directors and hired an investment executive.

Green’s appointment takes the size of Inflexion’s investment team to more than 30, the firm said in the statement.

Following a slew of successful exits over the last two years, Inflexion has moved into acquisition mode, according to the firm’s managing partner Simon Turner.

“It’s a busy couple of months ahead,” Turner told Private Equity International last September referring to the firm’s acquisition plans. “The next news flow will be about buying.”

In September Inflexion exited its investment in online travel agent On the Beach in a £240 million (€328 million; $366 million) initial public offering, its fourth listing – and its twelfth exit – in the previous 18 months.

Other notable exits last year include the sale of Aspen Pumps to 3i Group for £105 million, generating a 14x return, the sale of software company Reward Gateway to Boston-headquartered Great Hill Partners in a deal valuing the business at £140 million and generating a 7.7x return and a 59% internal rate of return, and the IPO of trust and fund administration services provider Sanne Group, which yielded a realised and unrealised return of 3.7x and an IRR of 80 percent.

Inflexion is currently investing its £650 million Inflexion Buyout Fund IV and its Inflexion Partnership Capital Fund I, a £400 million vehicle focused on minority investments.

Investors in Fund IV include the Florida State Board of Administration, New York State Teachers’ Retirement System and the State of Wisconsin Investment Board, according to PEI Research & Analytics. Among the LPS in the Partnership Capital Fund I are the European Investment Fund, Main Public Employees Retirement System and the State Pension Fund of Finland.

Recent acquisitions by the firm include the carve-out of the animal and crop health business from Frankfurt-listed global market research organisation GfK, the carve-out of the engineering inspection and consultancy division of RSA, which was renamed British Engineering Services, and the £92 million buyout of Alcumus Group, a provider of technology-enabled compliance risk management and certification services, which it acquired from fellow British mid-market player Sovereign Capital.