RJD makes 2.7x on leasing business

Private equity firm RJD Partners has made a 2.7x return on its investment Translinc, a fleet management company based in the UK.

RJD has sold specialist vehicles lessor Translinc in a deal valued at £65.6 million (€76.7 million; $104.9 million), the firm said in a statement. RJD would not disclose the original investment it made in the business in 2007, but did revealed the exit had delivered a 2.7x multiple and an internal rate of return of 26 percent.

Translinc is a UK-based business, originally formed within Lincolnshire County Council. It leases specialist equipment fleets, such as refuse vehicles, to councils under long-term contracts. The buyer, service provider May Gurney, said in a press release that the business is a good strategic fit for them in sector, geographically and customer base.

Translinc has grown organically without the need for bolt-on acquisitions, RJD said. A person close to the firm said the business’ long-term contracts was valuable as it offered a stream of confirmed revenue. The business has also benefited from the financial pressures on councils, which has made leasing rather than buying vehicles more attractive.

RJD is currently investing from its RJD Private Equity Fund II, which is £180 million in size. The fund has made 10 investments so far, with Translinc its second exit. RJD is most of the way invested through the fund and will look to start fundraising again next year, according to a person with knowledge on the matter. 

In July last year RJD made its first exit from the fund, generating a 3x multiple from its investment in teacher recruitment business Teaching Personnel. RJD sold the business to private equity firm Graphite Capital in a secondary buyout.