NBGI makes second big exit this week(2)

UK firm NBGI Private Equity has completed a second lucrative exit in two days, this time via the public markets. The flotation of UK-based Superglass means the firm continues to reward investors in its 2000 vintage debut fund with big returns.

NBGI Private Equity, a UK-based mid-market buyout firm, has completed its second lucrative exit this week, after generating a 10.8 times return from the London flotation of its portfolio company Superglass.

Superglass, a Scotland-based business that makes glass wool insulation and has a 23 percent share of the UK market, sold £72.8 million of shares on the London Stock Exchange’s main market today, valuing the business at about £135 million (€199 million; $274 million).

NBGI only bought the business in August 2005, backing a £40 million management buyout. It has sold its entire 50.9 percent stake for about £68 million through the offering, generating an internal rate of return of 244 percent and a money multiple of 10.8 times its original investment.

Superglass has enjoyed both sales and profit growth since the buyout, amid a boom in the residential house-building sector. Its insulation products have seen increased demand thanks to Government-led energy efficiency initiatives, while NGBI has been investing heavily in production, boosting capacity by 50 percent and increasing the workforce by 10 percent.

This is the latest in a string of successful exits for NBGI from its debut fund, which raised €100 million in 2000. with The National Bank of Greece as a cornerstone investor.

Following this deal, and yesterday’s £15 million sale of outdoor equipment retailer Mountain Warehouse for a 6 times return, the firm has now exited six of its investments from the fund. These six deals have returned 6.9 times the firm’s original capital, equivalent to an IRR of 76 percent.