London-headquartered pan-European manager Inflexion Private Equity has sold a passive minority stake in the firm to GP stakes investor Hunter Point Capital.
Inflexion will use the capital to grow its mid-market strategy in Europe, according to a statement seen by Private Equity International.
Hunter Point plans to support Inflexion “through its global network and business-building expertise”, the statement said. There will be no changes to governance, the investment process or day-to-day management of Inflexion.
“This partnership aims to deepen our expertise and [expand] our network at a time of enormous opportunity for our firm,” Inflexion managing partners Simon Turner and John Hartz said in the statement. They add that the firm is “particularly excited for the significant global connections and business-building capabilities” that Hunter Point provides.
Hunter Point brings its network and its US connections and credibility to Inflexion, according to a source familiar with the latter firm, who spoke to PEI on the condition of anonymity.
When it comes to recent growth, Inflexion has been expanding its value acceleration team – which includes professionals dedicated to technology, ESG and talent – and its international point people beyond Europe in Brazil, China and India, according to the anonymous source and the firm’s website.
It also opened its first office outside of the UK in 2021: its presence in Amsterdam covers the Benelux region, according to a statement at the time.
Inflexion invests across its core sectors – business services, technology, healthcare, industrials, consumer and financial services – via three funds: Buyout; its dedicated minority investment fund, Partnership Capital; and its lower mid-market fund, Enterprise.
The firm held a final close for Inflexion Buyout Fund VI on its £2.5 billion ($3.4 billion; €3 billion) hard-cap last year. It had an initial target of £2 billion, PEI data shows. The firm is also in the market with its third Partnership Capital fund, with an undisclosed target.
Inflexion has returned £5.3 billion to LPs to date, generating a realised return of 3.6x and 39 percent IRR, according to a source. Recent exits include software engineering services provider Mobica, which was sold to US-listed Cognizant at a 5.6x return; testing and compliance specialist Phenna Group, which was sold to Oakley Capital at a 5.6x return; and social advertising agency Goat, which was acquired by WPP‘s media investment group and delivered an 80 percent IRR.
Hunter Point’s investment in Inflexion closely follows its stake purchase in consumer giant L Catterton last month.
New York-headquartered Hunter Point was launched in 2020 by Bennett Goodman, co-founder of credit outfit GSO Capital Partners, now Blackstone Credit, and Avi Kalichstein, a former managing principal with asset manager builder and investor Easterly Partners Group and managing director at JC Flowers & Co.
It has also made investments in alternative asset manager MidOcean Partners; public and private credit manager Iron Park Capital, which has since been sold to General Atlantic; direct lending firm SLR Capital Partners; and societal impact-focused manager the Vistria Group.