Kleinwort Capital takes Hat Trick stake

The UK mid-market private equity firm has paid £23m for a 45 per cent stake in Hat Trick, a UK television production company.

Kleinwort Capital, the London-based mid-market private equity firm which spun out of Dresdner Bank in 2001, has taken a significant minority stake in Hat Trick Productions, the UK television company.


According to Kleinwort, Hat Trick sold a 45 per cent stake in a deal worth £23m. The Hat Trick management team will retain the remaining 55 per cent of the equity and continue to run the company. 


Kleinwort funded the acquisition with a £9m equity investment from Kleinwort Capital Partners IV. It is the fourth investment for Kleinwort Capital Partners IV which is currently being raised, targeting £200m. Debt capital was provided by Barclays Leverage Finance.


Hat Trick Productions was founded in 1986 by its joint managing directors Denise O’Donoghue and Jimmy Mulville. Between 1986 and 1990 Hat Trick developed and produced a series of shows including ‘Have I Got News For You’, which has been broadcast on the BBC for the past thirteen years. The Hat Trick Group achieved revenues in excess of £20m in the year to 30 June 2003.


“Hat Trick has a market leading track record in its industry of, year on year, producing highly creative and commercial programming with international appeal,” said Sebastian McKinlay, head of media investments at Kleinwort Capital. “The company can develop into a stronger and broader business, taking advantage of the many changes occurring in the market.”


Kleinwort Capital makes mid-market private equity investments of between £10m and £100m in UK and Irish companies in the media, technology, healthcare services, and specialist manufacturing sectors.


Kleinwort Capital has £300m under management and currently has a portfolio of private company investments including Profund Systems, Ramesys Holdings, European Telecommunications & Technology (ETT), Discovery Group, Video Arts, Rayner Foods, InterMed, Sona Group, Kangol and Vivista.